LIPPINCOTTS 
HOME MANUALS 




THE BUSINESS 

OF THE 
HOUSEHOLD 

C.W. TABER 





Class _ I 
Book_ 



T"3 



CojpglitR?_ 



/ e22_ 



COPYRIGHT DEPOSIT. 



'Survey our empire and behold our home! " 

— Byron. 



LIPPINCOTTS 

HOME MANUALS 

EDITED BY 
BENJAMIN R. ANDREWS, Ph.D. 

ASSISTANT PROFESSOR OF HOUSEHOLD ECONOMICS, TEACHERS COLLEGU, 
COLUMBIA UNIVERSITY 



THE BUSINESS OF THE HOUSEHOLD 

By C. W. TABER 

AUTHOR, TABER'S DIETETIC CHARTS, TABER's MEDICAL DICTIONARIES, ETC. 



LIPPINCOTT'S 

HOME MANUALS 

Edited by BENJAMIN R. ANDREWS, Ph.D. 

TEACHERS COLLEGE, COLUMBIA UNIVERSITY 



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THE BUSINESS OF THE HOUSEHOLD 

By C. W. TABER 

AUTHOR OFTABER'S DIETETIC CHARTS, 
NURSES* MEDICAL DICTIONARY, ETC. 

438 pages. Illustrated. 

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Lippincott's Home Manuals 

EDITED BY BENJAMIN R. ANDREWS, Ph.D. 

Teachers College, Columbia University 



THE BUSINESS 

OF THE 

HOUSEHOLD 

BY 

C. W. TABER 

» » -4 

AUTHOR, TABER'S DIETETIC CHARTS, TABEr's CHART OF THE DIGESTIVE SYSTEM, 
TABER'S PHYSIOLOGICAL CHARTS, NURSES* MEDICAL DICTIONARY, ETC. 



WITH THE ASSISTANCE OF THE FOLLOWING 
PROFESSIONAL AND TECHNICAL EXPERTS: 



S. MARIA ELLIOTT, A.M., and MARY B. STOCKING, S.M. 

SIMMONS COLLEGE, BOSTON 

NINIAN H. WELCH, B.S., A.M., LL.D. 

MASTER- IN-CHANCERY, CIRCUIT COURT, CHICAGO 
PROFESSOR, PERSONAL PROPERTY AND SALES, CHICAGO, KENT COLLEGE OF LAW. 

WILLIAM A. DURGIN 

ELECTRICAL EXPERT FOR THE COMMONWEALTH EDISON COMPANY, CHICAGO 

ILLUSTRATED 

SECOND EDITION, REVISED 




PHILADELPHIA & LONDON 
J. B. LIPPINCOTT COMPANY 






COPYRIGHT, 191 8, BY J. B. LIPPINCOTT COMPANY 
COPYRIGHT, 1922, BY J. B LIPPINCOTT COMPANY 



BiectrotyPed and Printed by J. B. Lippincott Company 
The Washington Square Press, Philadelphia, U. S. A, 



OCT -2 72 

©CU6S6027 



PREFACE 

The economic conditions confronting the American people to- 
day have made opportune a detailed study of the business of the 
household and of household finance, such as is presented in this book. 

The "efficiency" idea has revolutionized many an industry and 
changed thousands of processes and methods in factories, offices 
and stores; but it remained for "the high cost of living" to intro- 
duce efficiency into the business of the home. 

In searching for leakages in the family purse, two important 
facts recently have been recognized. First, it has been found that 
the work of the home is a most complex industry, involving factors 
dealt with in the factory, the office and the store, and in nearly 
every branch of business. Second, it has been found that this in- 
tricate business, representing an annual expenditure of from six 
hundred to many thousands of dollars per family, has been con- 
ducted without thought of business principles or methods, and that 
"efficiency" is just as necessary in the home as it is in the com- 
mercial world. The idea that housework is degrading or menial has 
been abandoned, and we are now awake to the fact that the success- 
ful home-maker must make a business study of the principles and 
practices involved in housekeeping. 

The necessity that confronts " every family to-day, demands 
either an increased income, a greater purchasing power for that 
income, or a decreased expenditure. These facts bring us face to 
face with many fundamental principles that either have been un- 
known or ignored if known. 

In colleges and other higher institutions where home economics 
is taught there is need of a comprehensive text dealing with the 
household budget and other financial and business matters, and 
this book it is hoped may serve that need. 

The public schools have done much in enlightening our girls 
upon the mysteries of cooking, and an attempt has been made to 
introduce other household arts into the domestic science curriculum ; 
but the time has come when a subject involving all of the problems 
of the making of a home should be presented to high school girls 
for their consideration. Boys, too, should be introduced to their 
home responsibilities. 



vi PREFACE 

Indeed, even the students in the upper grades of our elementary 
schools, and in the new junior high schools which are being or- 
ganized, are competent to study practical problems of household 
finance, which after all are merely applications of arithmetic. Such 
applications should be based upon sound theory as to the meaning 
of the home and management of its business. 

This book may be put as a text-book directly into the hands of 
upper high school and college students, and it may also serve as a 
reference book for the teacher of home economics in schools of all 
grades. The latter, by selecting subject matter from the book, may 
bring into her instruction in cooking, sewing, and household man- 
agement simple lessons in household business. As a text, this book, 
it is believed, will be available not only for girls in the home 
economics courses, but for mixed groups of boys and girls, who thus 
may follow a course in the economics of the household. 

Schools that have offered something of household study to boys, 
such as camp cookery, the principles of nutrition, or house-plan- 
ning, have been surprised to find a quick response. The present 
subject of household finance is one, which by its nature appeals 
even more strongly to boys, for the finances and business of the 
home is a matter in which the man of the house always has taken 
equal responsibility with the woman. 

Teachers of economics and civics who have been trying to make 
their courses apply to the practical issues of every-day life, will 
find this book of direct help in furnishing material which can be 
used in discussing personal and household economics in their rela- 
tion to the economics of public welfare and business. 

The book is also planned to be of practical service to the home- 
maker and housekeeper. In the short courses and other extension 
instruction of the colleges; in the work of the women's clubs; in 
the rural teaching of home economics to groups of farm women; 
and in the study of the family budget and household accounts, 
which women everywhere are making, this book will serve as a text, 
and as a reference work. 

Tne men of the house will be found equally interested in these 
matters, and if home-study clubs with a membership of two will 
consider the plans here outlined, and if they will faithfully carry 
out the suggestions made, the problem of home finance will straight- 
way be solved. 



PREFACE vii 

Where the book is used as a text in schools, it is recommended 
that students, as far as possible, make a study of their home prob- 
lems, securing the co-operation of their parents in considering the 
questions that arise in the course. 

The study of the business of housekeeping, as presented in the 
following chapters is not theoretical. The suggestions given come 
from a practical experience of nearly a quarter of a century in the 
management of a household. In studying this subject, however, one 
must take into consideration the human equation. Conditions are 
not standard and every family represents a variable unit that can- 
not be considered a basis upon which to pattern methods for another 
home, but from the experience of every family one may learn some- 
thing that will help in solving similar problems. It is with such an 
expectation that this work has been offered to the home-maker and 
student of the Business of the Household. 

September, 1918. 

The Author. 



ACKNOWLEDGMENTS 

The author wishes to express his thanks to Dr. Benjamin R. 
Andrews, S. Maria Elliott, A.M., and Mary B. Stocking, S.M., whose 
help has been invaluable in preparing this text in the form best 
suited for the needs of Home Economic classes ; to Ninian H. Welch, 
B.S., A.M., LL.D., Master-in-Chancery, Circuit Court, Chicago, 
who edited the chapters covering legal subjects of interest to the 
family; to William A. Durgin, Electrical Expert for the Common- 
wealth Edison Company, Chicago, who edited the chapter on Elec- 
tric Light and Power, and to Mildred Joyce Taber, Dietitian, U. S. 
Dept. of Agriculture, Home Demonstration Work in States Relation 
Service, who edited the chapter on Pood and Marketing. 

This acknowledgment would not be complete if the author did 
not publicly express his apppreciation to the one who for twenty-five 
years has been teaching the writer what he has learned about the 
business of the household — my wife, who has made this book possible. 

The Author. 



CONTENTS 

PART I 
FUNDAMENTAL PRINCIPLES OF HOUSEHOLD FINANCE 

CHAPTER PAGE 

I. Household Management a Profession 1 

II. Basic Principles Upon Which to Build a Home 6 

III. The Family Income 12 

IV. The Bank Account 19 

V. Checking-up a Bank Account 35 

VI. Household Accounts 41 

VII. The Apportionment of Income Through the Family 

Budget 60 

VIII. Financing the Family 76 

IX. High Prices and Modern Problems of Living .......... 95 

PART II 
FACTORS IN THE FAMILY BUDGET— NECESSITIES 

X. Living Conditions — Home Ownership 110 

XL Rent and Water Supply 119 

XII. Fuel , 137 

XIII. Gas Light and Heat 150 

XIV. Electric Light and Power 163 

XV. Taxes . 177 

XVI. Fire Insurance 187 

XVII. Food for the Family 192 

XVIII. Food Marketing 210 

XIX. Weights and Measures 220 

XX. Clothing 234 

PART III 
FACTORS IN THE FAMILY BUDGET— HIGHER LIFE 

XXI. The Household Working Equipment 246 

XXII. System in the Home 262 

XXIII. The Problem of Service in the Home. .,..,,, 287 



xii CONTENTS 

XXIV. Life, Accident and Health Insurance 300 

XXV. Savings and Methods in Saving 314 

XXVI. Institutions for Savings and Investments 329 

XXVII. Investments 342 

XXVIII. Old Age 350 

XXIX. Higher Life and Cultural Wants in the Family Budget 358 

PART IV 
LEGAL AND BUSINESS STATUS OF THE FAMILY 

XXX. Some Phases of the Legal Status of the Family 385 

XXXI. Heal Estate Titles and Transactions 393 

XXXII. Inheritances and Wills 403 

XXXIII. Laws Which Affect the Family 410 

XXXIV. Business Principles in the Home— Summary 416 

XXXV. To the Student and Teacher of Home Economics 425 






THE BUSINESS OF THE 
HOUSEHOLD 

PART I 

FUNDAMENTAL PRINCIPLES OF 
HOUSEHOLD FINANCE 

CHAPTER I 

HOUSEHOLD MANAGEMENT A PROFESSION 

Household management is both a practical art and a trained 
profession. Not until it is recognized as such will the average home 
be maintained upon an efficient and economical basis. It is as 
much a business enterprise as is the running of a store or office, or 
as is the operation of a factory. 

A Wrong Conception. — The time was when we thought, if we 
did not say, " Anyone can be a farmer." Now we know differently. 
We realize that in order to be a successful farmer, there not only 
must be adaptability of the individual to that particular activity, 
but that both a general and a specific education is necessary. Many 
a tired mother used to say, "Oh, any ignorant woman can bear 
children, cook, mend and sew, wash dishes, scrub floors, and do 
such menial work about the house." The time has gone, however, 
when housework is considered menial, if it ever was so thought of, 
and we now realize that if a housewife is going to be anything better 
than a drudge and a slave, she must possess a special knowledge 
that requires a certain specific education in addition to experience. 

Men have belittled this idea and have scoffed at the thought of 
comparing a woman's work in the home with a man's work in the 
office, the factory or store, but they are rapidly changing their con- 
ception of household management and home making. Perhaps the 
low value that the woman herself has set upon her own work in 
the heme, may have been largely responsible for the man's attitude. 

1 



2 THE BUSINESS OF THE HOUSEHOLD 

Home Making a Highly Specialized Industry. — As in the fac- 
tory, so in the home, raw material must be purchased and converted 
into finished products ; countless operations must be supervised and 
directed; various seemingly detached enterprises must be fostered 
and developed and made to co-ordinate with all of the general family 
activities. The labor problem must be considered and dealt with; 
heating and illuminating factors must have attention ; capital must 
be invested and turned to the best possible advantage. Overhead 
costs, running expenses and depreciation insistently demand in- 
telligent attention and with all these problems, the human equation 
of relationships, of intimate family ties combined with the per- 
plexing questions of education, ethics, religion and society, demand 
serious thought. 

The business man may say "business is business," and with the 
saying of it dismiss all questions of personality, of possible friend- 
ships or moral relationships, but the home manager cannot escape 
these considerations. She must not only consider every detail 
of every problem of household activity but such problems must be 
considered in relation to every individual in the household. Nor can 
her household be considered as a detached unit. It is linked with 
social activities and is related to and affected by the public welfare. 
In the faithful discharge of her duties the household manager is 
constantly sounding the gamut of all the human emotions. 

Conditions Now Different. — As culture and civilization de- 
velop, life becomes more and more complex. We often hear of 
the problems that confronted our grandmothers, and how they 
toiled until long after dark; but strenuous as were their lives, 
they, after all, were comparatively simple as compared with pres- 
ent day standards. Their problem was largely a problem of time 
and labor. There was just so much work to do, so many in the 
household to perform that work and so many hours a day in 
which to accomplish it. During the early life of our grand- 
mothers, before 1850, nearly all that was eaten or worn was 
produced on the farm and in the home. Spinning and weaving 
and sewing and mending; the making of butter and of candles, the 
putting up of preserves and jellies and jams, cooking and baking, 
the manufacture of soap, nearly all that contributed to the 
sustenance of the body and its outward protection was a part of the 
duties of the housewives and their daughters in those "good old'*' 
days. Strenuous work it was, of course, but if the present day 



HOUSEHOLD MANAGEMENT A PROFESSION 3 

housekeeper's work has lessened, it has been more than offset by new 
problems and conditions. 

Then came the generation when our mothers were children, 
when the shop and the factory removed forever from the home the 
spinning-wheel and the distaff; when candle-making and soap- 
making and the weaving of cloth became factory processes. Then 
the mother and her sisters suddenly found themselves with more 
time on their hands than their ancestors had ever boasted of and 
more perhaps than their children now enjoy. With the cessation of 
factory activities in the home, came no compensation other than 
more leisure, for when mother was young it was considered almost 
a disgrace for a girl to work in factory, store or office. In fact, there 
were few opportunities of work for girls outside of the home, and 
so many of them were brought up in idleness or with the foolish 
idea that as " ladies " they were not supposed to contribute either 
to their own support or to the family income. 

To-day the problem is different. The dignity of labor, whether 
it be in the kitchen, the office or the factory is recognized by every 
right-thinking individual. Life, however, has become very com- 
plex and new problems are constantly clamoring for solution. Eco- 
nomic conditions in the last twenty years have been continually 
raising prices, as well as the standard of living, without an imme- 
diate corresponding rise in wages and salaries with which to meet 
these conditions. Increase in wages always lags behind the rise in 
prices, and this it is which makes a period like the present so 
difficult for the housekeeper or for "the woman who spends." We 
may rightfully be dissatisfied with many old conditions and should 
raise the standards enjoyed by our parents and grandparents ; but in 
order to maintain our place in the world and to take our proper part 
in its activities, more than merely physical strength is necessary. 

The successful housewife should now be equipped with a gen- 
eral education. In addition she should have some knowledge of 
economic conditions ; she should know something about chemistry ; 
she should understand not a little about the mysteries of the 
human body, its physiological processes, its needs and care; she 
should know something of food values and of cookery, and in all 
respects she should be a successful purchasing agent. She should 
be something of a dressmaker and a milliner. She should 
know something about bookkeeping amd accounting and busi- 
ness methods and business problems in general. While making 



4 THE BUSINESS OF THE HOUSEHOLD 

a home involves far more than a knowledge of material values, 
with such an equipment any woman's success as a homemaker 
is more nearly assured. She probably will have to meet the 
teacher's problems of the child's education, but in a more vital 
way. If, in addition, she is a philosopher, a musician, an artist, 
or has other special gifts, she will find full scope for these talents in 
her home. 

Rules and Standards Variable. — Because household manage- 
ment is an art, a business and a profession, it does not necessarily 
follow that it can be based upon one set of definite rules or standards. 
Office hours cannot be maintained. A bookkeeper cannot be hired 
to take charge of the household accounting. Factory conditions 
cannot be instituted. 

Certain authorities have, for example, laid down definite per- 
centages for the division of the family income, and the women's 
papers are full of personal experiences as to "How I did this or 
that on so much per week." All such rules and individual expe- 
riences are helpfully suggestive, but will mislead if we try to apply 
them to every family. To say, for instance, that one-fifth of the 
income should be the proper proportion to expend for rent is, on its 
face, an absurd statement when made without qualification. The 
size of families differs; their needs differ; environments differ in 
affecting rentals in country and city, and in different sections of the 
same city, and so there are many conditions and circumstances that 
may make one-fifth of the income either too much or not enough 
to expend for rent. Therefore, each problem must be considered ac- 
cording to the individual family. 

In studying the problems presented, the statements made and 
the suggestions given should be carefully weighed and applied to the 
conditions that actually confront one in one's own home. In many 
cases the factors with which we must deal in the home, may be 
changed to fit the principles enunciated, while in other cases the 
suggestions given should be adapted to meet conditions that cannot 
be changed in the home. 

QUESTIONS. 

1. In what way may the work of the home be compared with that of the 

factory? With that of the store? 

2. What kind of work did our grandmothers and great-grandmothers do 

in the home that is now done in factories? 

3. In what way did the home conditions from 1840 to 1880 differ from 

those of the present day? 



HOUSEHOLD MANAGEMENT A PROFESSION 5 

4. Name some of the factors of to-day that are involved in successful 

home-making. 

5. Why should a woman have special training in home-making? 

6. In what way is life more complex than it used to be? 

7. Name some of the problems confronting the home-maker of to-day, 

with which our grandmothers did not have to contend. 

8. What can you name that is used and made in the home that is not made 

in manufacturing establishments? 

9. In what way is household management a business? An art? A pro- 

fession ? 
10. What is the difference between home-making and house-keeping? 

REFERENCES 

Devine, E. T., The Economic Function of Woman. Teachers College, 

Columbia University, New York City. 
Hunt, C. L., Home Problems from a New Standpoint. Whitcomb and 

Barrows. 
Richards, E. H., The Cost of Living. John Wiley and Sons. 
Richardson, B. J., The Woman Who Spends. Whitcomb and Barrows. 
Talbot and Breckenridge. The Modern Household. Whitcomb and 

Barrows. 



CHAPTER II 

BASIC PRINCIPLES UPON WHICH TO BUILD A 

HOME 

Having recognized economic conditions as they exist, and having 
learned how such principles affect living conditions, the student 
should determine the nature of the foundation upon which the home 
should be built. 

One's First Duty. — The raising of a family, large or small, 
is man's first duty to the human race and to society. It is the very 
best service that can be rendered to the community and to one's 
country. From a purely selfish point of view, it is the best service 
the individual can render to himself. 

If this statement is true, then a man's first duty should be the 
social, cultural and religious development of himself, his wife and 
children, before the accumulation of money becomes of paramount 
importance. One may, of course, acquire the higher things of life 
while at the same time material possessions are being accumulated, 
but if one must be sacrificed at the expense of the other, it should 
be the latter and not the former. 

If this idea is carried out, material things will surely follow. 
Everything that helps to develop the individual increases that in- 
dividual's value in every way, earning capacity included. Aside 
from the fact that it was Christ who said, "Seek ye first the king- 
dom of God; and all these things shall be added unto you," these 
words constitute a scientific statement that anyone can prove if he 
will. 

If then, one will adopt the principle that the higher things 
of life must come first, and that the intellectual and spiritual de- 
velopment of the individual is the prime requisite of life, the ma- 
terial harvest will follow. In starting a home, every couple is con- 
fronted with a choice between two principles as the basic principle of 
life. One of these principles is that already enunciated, and the 
other is the materialistic principle that the accumulation of money 
and property is the essential that makes for human happiness. 

Materialistic Principles. — The student of household finance 
may be surprised to be confronted with statements regarding the 



BASIC PRINCIPLES FOR BUILDING A HOME 7 

spiritual side of life, but it is just these principles, which properly 
understood and applied will provide for increased material demands. 

Thrift and saving are admirable and they should not be under- 
estimated, but neither should they be over-estimated. Miserliness 
is despicable ; hoarding is vulgar ; both are selfish, fatal to character 
and a danger to the community and nation. 

Despite the constantly increasing cost of living, economists and 
bankers are urging the necessity for saving. All kinds of devices 
are being invented to attract the salaried man's earnings into the 
bank. Bankers say that lower earning capacity and the fear of hard 
times increase savings deposits. Although increased savings de- 
posits may be a desideratum for both the banker and the broker, dan- 
ger lurks in the unqualified statements made by those interested in 
getting people to save. There are times when it may be asked, " Is it 
worth the price ? " If savings means stunted lives, that is, physical 
derelicts or mental incompetents during this or the next generation 
through enforced self-denial and the absence of bodily comforts or 
the starving of mental cravings and the sacrifice of spiritual develop- 
ment, — then the price of increased bank deposits is too high. 

Bank Balance May Cost Too Much. — It is possible to be so 
self-sacrificing in saving as to stunt self -development. A growing 
bank balance is not desirable at a tremendous sacrifice of the stand- 
ards of living. 

If a part of these savings was expended for better living quar- 
ters, better nourishment, fewer hours of toil and worry, a better 
physical endowment and a broader education, would not such results 
prove of far more value to the individual, and the community, and 
would not the wealth of the next generation, if not of this one, be 
greater ? To leave money to children instead of using it in making 
them fully capable of acquiring their own often proves a curse. 

It is necessary to form habits of thrift, but if in addition to the 
increased cost of life's necessities and the higher standards of living 
demanded, one must assume the added burden of unduly swelling a 
savings account, there will be little left to life but a wild scramble 
to accomplish the impossible. To meet such exigencies, every 
member of the family may be subjected to a process of self-denial 
and of sordid economizing that can only result in the wilting of 
worthy ambition, the dwarfing of soul and the stunting of the mind 
and body. 

Regardless of the fabulous stories told of the wonders accom- 



8 THE BUSINESS OF THE HOUSEHOLD 

plished by savings, what do we know of the price paid for that kind 
of success ? No man on a wage or a reasonable salary can possibly 
acquire a fortune from what he can save, and at the same time pro- 
vide his family with the comforts and education to which they are 
entitled, and should he succeed, the effort would take the greater 
part of his life and then the fortune would probably be left for others 
to enjoy or fight over. 

False Standards of Living. — The cost of " high living " means 
for many families, the cost of "i alse standards of living." The first 
lesson should be how to do without that which we are not entitled to, 
and how to distinguish between real necessities and luxuries. 

Most of us can and should dispense with automobiles, piano- 
players, expensive talking-machines, diamonds, silk underwear, 
shoes that cost from ten to twenty dollars a pair, to say nothing of 
servants and maids and visits to the hair-dresser. 

We might live just as comfortably in five rooms as in the ten we 
may be occupying. It is not necessary to be living next door to a 
millionaire, or to have a cottage at the sea-side or in the mountains, 
or even to visit a summer resort once a year. We have no business 
to care what the Smiths think or what the Browns may say. We 
have no moral right to play bridge for money or prizes, or to enter- 
tain, beyond our means in order to keep up. with the procession of 
"our set." We have no justification for belonging to expensive 
clubs or sororities or societies when household necessities must be 
sacrificed as an offset to this extravagance. 

There are very few families entitled to purchase club steaks or 
other expensive cuts of meat every night for dinner. Neither are 
we justified in loading our tables with hot-house fruits and vege- 
tables or garden produce shipped a thousand miles when out of 
season in our own climate. Those denials should not be considered 
economies. When over eighty per cent, of the people of these United 
States are living on an income of not more than $1200 a year, in- 
dulgence in such things for most families is nothing but sinful 
extravagance. 

When will we learn that there is nothing in furniture, pictures or 
rugs, or in any material thing that can or will bring us lasting hap- 
piness. The simple life need not be the farm or suburb, but it should 
mean a saner standard of living. Life without grind ; life without 
the eternal struggle to keep up appearances ; life without a thought 



BASIC PRINCIPLES FOR BUILDING A HOME 9 

of what the gossip's tongue may say. Just living one's own life, in 
a modest, unassuming manner, content with enough wholesome food 
to eat, with a reasonable amount of neat apparel; with a modest 
home whether it be in a house or an apartment, in a decent neigh- 
borhood and a pleasing environment. Simple pleasures and 
homely joys ; a few friends ; good books ; music ; husband and wife ; 
parents and children, and then — if possible, a few dollars saved at 
a time and placed in the bank or in a safe investment toward a com- 
petency for old age. What more is needed to make for happiness ? 

A Saner Policy Advocated. — And so, every young couple just 
starting out in life, should honestly face the two principles that con- 
front them at the outset. Is the future to be built upon the sordid 
accumulation of money and the things which money will buy to the 
exclusion of the higher things of life, or if one must be sacrificed, 
will it be the mere hoarding of dollars ? Let their policy be first, the 
things of the higher life, with the accumulation of as many of the 
material things as may be acquired without a sacrifice of their ideals, 
for after all, we can take nothing with us into the next life, and 
after we have gathered together the things of this world we find they 
are not worth the effort and the sacrifice necessary to acquire them. 

Married Life vs. Single Life. — As stated at the beginning of 
this chapter, " the raising of a family, large or small, is man's first 
duty to the human race and to society." The man and wife who have 
successfully accomplished this have enriched the world. Success- 
fully to rear and train and educate three or more children is a task 
that is not sufficiently appreciated by the world at large. One 
might truthfully say, as of virtue, that the task is its own reward. 
It is, although it should be entitled to more recognition than that. 

Statistics are said to show that married men live longer than 
bachelors, probably because of their more or less Tegular habits and 
the care received in the home from a loving and efficient wife. In 
many industries, the character of the wife and home is inquired into 
before a man is hired. It is also claimed that the married man 
attains as much of this world's goods and as high a standard in the 
world as the bachelor. If this is true, then he succeeds in the face 
of a considerable handicap. 

A married man in some ways is placed at a disadvantage in the 
economic struggle with every single man with whom he must com- 
pete. As an example, Mr. Holmes has three children and a wife. 



10 THE BUSINESS OF THE HOUSEHOLD 



He is in the same business in which Mr. James is engaged. Mr. 
James has no one but himself to support; as a result Mr. James 
boards. In order to raise his family properly, Mr. Holmes finds it 
necessary to buy or rent a house. If he buys it, the state taxes him 
for providing his family a decent place in which to live. Instead of 
having only one to support, Mr. Holme,s must earn enough for five; 
hence he cannot save as much as Mr. James can, nor have such sav- 
ings to invest in his business. All the expenses involved in raising a 
family place Mr. Holmes at an economic disadvantage with Mr. 
James. If in the face of these conditions, Mr. James fails to succeed 
as well as Mr. Holmes, all other things being equal, it must mean 
that a single life lacks impetus or spells selfishness, and that ex- 
penditures are made for self-indulgence, legitimate though they may 
be, that are not a part of the budget of Mr. Holmes. It means that 
the better care received by the married man and the establishment of 
regular and good habits all go to equalize the difference in the 
economic conditions enjoyed by each type of business man. 

Woman's Work a Productive Factor. — Another factor that 
increases the married man's efficiency, is the fact that his wife works 
productively in the home, while he contributes his earnings to the 
family. The part contributed by the wife, though different in char- 
acter and scope, is equally as valuable as the husband's efforts. To- 
gether, a better living is obtained than that which usually falls to 
the unaided efforts of the unmarried man. 

There are, it is true, many compensations for the cares involved 
in family life, but it does sometimes seem that the state should at 
least equalize the unequal competition between the married and the 
unmarried. The man or the woman, who deliberately chooses the 
single life, or being married selfishly refuses the duties of parent- 
hood, should be compelled by the state to contribute to the care and 
the support of orphan children. The poodle-dog woman should be 
ostracized by every right4hinking wife and mother. The man or 
the woman who does not in some way directly contribute to society 
or the world at large is a parasite. Merely to earn enough to pro- 
vide for one's own needs or luxuries is not sufficient. To enrich the 
world by bringing into existence something that did not exist before, 
whether it be a beautiful picture, a work of art, a book, a more beau- 
tiful flower, a new type of vegetable or fruit, a house, a skyscraper or 
— above everything else — a child, is a type of accomplishment that 
differentiates between the parasite and the real man or woman. 






BASIC PRINCIPLES FOR BUILDING A HOME 11 

QUESTIONS 

1. What is meant by the "higher things of life"? 

2. Name two fundamental principles of life. 

3. What may be termed "a materialistic principle of living"? 

4. Under what circumstances if any should saving be discouraged? 

5. Can one acquire wealth from what can be saved from a salary? 

6. What are the principal extravagances of the average family? 

7. What might be called economies in the maintenance of a family? 

8. Should environment be sacrificed for the purpose of reducing the cost 

of living? In order to secure a competence against old age? 
9 Do you owe a duty to society ? Why, and how can it be met ? 

10. Is a married man upon an equal economic or competitive footing with a 

single man? In what way is the married man handicapped? 

11. What factors contribute to reduce thei single man's advantages over the 

married man? 

REFERENCES 

Bosanquet, H., The Family. The Macmillan Co. 

Devine, E. T., Economic Function of Woman. Teachers College, Columbia 

University. 
Gillette, J. M., The Family and Society. A. C. McClurg Co.. 

GrOODSELL, W., HISTORY OF THE FAMILY AS A SOCIAL AND EDUCATIONAL 

Institution. Macmillan Co. 
Hillis, D., The American Woman and Her Home. Fleming H. Revell Co. 
Hunt, C. L., Home Problems from a New Standpoint. Whitcomb & 

Barrows. 
Richards, E. H., Cost of Living. John Wiley & Sons. 
Richards, E. H., The Art of Right Living. Whitcomb & Barrows. 
Smith, N. M., The Three Gifts of Life. Dodd, Mead & Co. 
Tarbell, L, The Business of Being a Woman. The Macmillan Co. 
Veblin, T„ The Theory of the Leisure Class. The Macmillan Co. 



CHAPTER III 
THE FAMILY INCOME 

The handling of the family income has always had possibilities 
of misunderstanding and friction between husband and wife, and 
perhaps it has been more of a factor in the development of the 
twentieth century feminist than generally has been supposed. That 
it has been and still is a serious problem in many families is evident 
to every careful observer. Many a family has been wrecked upon 
this rock in the matrimonial sea, and until some practical method 
can be evolved that will prove satisfactory to both parties in deter- 
mining the relation of husband and wife to the family income, it 
should be the duty of parents and educators to warn children before 
marriage, of the need of making definite plans for the disbursement 
of the family funds. Some plan for the use of their money is one 
of the many important matters regarding which young people should 
come to an understanding before marriage. 

It may, then, be well to consider some of the methods in vogue 
for disbursing the family income. Although the value of any 
method depends upon the spirit in which it is carried out, Inhere are 
obvious advantages and disadvantages in each. 

The Doling Method. — This is possibly the most common, as it 
is certainly likely to be the most pernicious plan. It may even 
assume the form of charity or largess dispensed by a condescending 
husband to a timid wife. Such a wife is compelled to cajole her hus- 
band almost daily in order to extract a dollar from him for the day's 
groceries. "Why ! what did you do with that fifty cents I gave you 
yesterday," is the usual reply of such husbands. Such a morning 
ordeal is the daily crucifixion that many a wife endures. No woman 
can maintain her self-respect and submit to this daily process, year 
in and year out, and it is certain that no man would consent to con- 
duct his employees business on such a basis. 

No woman should be compelled to ash the " head of the family " 
for money, whether it be for household necessities or for her own 
personal use. It takes money to run a home, to buy food and to 
clothe the members of a family. Some men seem to rediscover this 
wonderful fact every day and then forget it until the next day. 
12 



THE FAMILY INCOME 13 

The Allowance Plan. — While this method is much better 
than the one just mentioned, it has its defects. One of the principal 
objections to it is that oftentimes it is based upon a wrong prin- 
ciple. For many centuries "to allow" meant only "to tolerate," "to 
permit." Some husbands act upon the old meaning of the word, and 
no wife should be simply tolerated. The word allowance in this 
sense smacks of condescension. Parents sometimes place their 
children on an allowance, and children grown do not see the in- 
congruity in the husband giving and the wife accepting such a 
nominal gratuity. The word now has another meaning, "to grant 
as a right," "to share." With this understanding of an allowance* 
one need not quarrel, whether the one who receives be the wife or 
the child. But too often, in the case of the wife this allowance or 
stipulated sum of money is not for herself, but that she may save 
husband the trouble of paying for .the meat and the bread and the 
many petty bills that come in to every householder; if the wife is 
an expert purchasing agent, and an expert manufacturer, and an 
expert cook and manager, if there is anything left from the weekly 
or monthly allowance she generally is allowed to retain it as a com- 
mission for her services, or perhaps to be spent for some article with 
which to adorn herself and thus to become more attractive to her 
husband. 

Fortunately, many wives are not sufficiently sensitive to detect in 
this plan any insult to their position as equal partners. They feel 
such a freedom from the restrictions of the "doling method" to 
which Mrs. Smith is subjected, that they perhaps never think of the 
fact that the wife is not her husband's clerk nor his manager, but 
his partner , and that as a member of the firm she has the same rights 
in the business and its income as her husband-partner. 

Aside from sentimental reasons or matters of principle, another 
objection to this plan is that it usually holds the wife to strict ac- 
countability to the husband for the expenditure of the allowance. 
While every wife probably would be glad to go over her accounts 
with her husband, and perhaps even be anxious to detail to him the 
bargains she had secured, the necessities she had gone without and 
the money she had saved, the feeling that she must or that she 
should make an accounting or report to her husband at the end of 
the week or month, is anything but a pleasant ordeal. Of course, 
there are many husbands who say they do not expect such an ac- 



14 THE BUSINESS OF THE HOUSEHOLD 

counting, but the wife cannot but feel that she should render an ac- 
counting, whether it be expected or not. 

Another defect in, this plan lies in the fact that often expendi- 
tures must be made during an allowance period of a week or a 
month, that cannot possibly be met by any one week or month's 
allowance. Clothing eats up money and the demand for clothing 
is largely seasonal, principally coming during the spring and late 
fall months. Ten or twenty-five dollars or more a week might take 
care of the average weekly household bills and yet the allowance 
probably would not be sufficient to meet the seasonal demands for 
clothing. To meet this difficulty, a portion of each weekly or 
monthly allowance must be set aside in order to accumulate a suf- 
ficient sum to defray the expense for such purchases. Such emerg- 
encies have resulted in the scheme of apportioning the allowance 
into certain sums and keeping them separately in boxes or en- 
velopes, one for clothing ; another one for food, etc. Such methods 
may sometimes prove useful where the wage is small and expen- 
ditures few. 

If the allowance is small and given in cash, another handicap 
that this method imposes upon the wife is carrying money about the 
person or keeping it in the house. Actual loss through pickpockets, 
sneak thieves and burglars, carelessness and fire is by no means a 
negligible factor to be considered. The home manager has too 
many other important problems with which to contend without 
making a banker of herself or a saf ety-deposit vault of her home. 

Another objection, though not inherent in this method, is that 
it usually results in paying cash for everything purchased. This 
means that small change must always be kept on hand. Often 
necessary purchases are neglected because of the difficulty of getting 
change for a bill. The paying of cash means an effort to account 
for every penny or dollar almost daily for fear of loss or mistakes 
in the handling of the same. This may seem trivial to many but 
it is a real bugbear to every housewife who adopts this method. 

The Charge System. — A practice common among families of 
means, as well as with those of a fair income, is the charge-account 
plan. Charge accounts are maintained at all the principal stores, 
and wives are given carte blanche to order and to charge anything 
needed, or perhaps desired. Bills are rendered monthly and per- 
haps paid by the husband without question, but wives having such 
accounts at their disposal are sometimes at their wit's end to find 






THE FAMILY INCOME 15 

methods for securing ready cash. Many a wealthy man's wife is 
often unable to secure cash for car-fare. 

All such methods rob the family of the value of participation in 
a joint planning of expenditures by husband and wife. The part- 
nership basis cannot obtain under such methods, and the results are 
the disadvantages of the "doling plan/' 

It is not the credit system that is at fault; for that has its very 
decided value as elsewhere stated, but when the credit system is 
merely used to deprive the wife of ready cash and absolve the hus- 
band of participation in joint responsibility for the family ex- 
penditure, then the credit system is made to serve a purpose for 
which it is not intended. 

The Only Fair and Businesslike Method. — "A horse that 
will not stand without hitching, is not worth having," is an old 
saying. Husbands and wives take each other for "better or for 
worse." They assume from the very first day of wedded life, that 
they can trust each other, and trust will be the basis of their future 
happiness. Without it happiness simply cannot exist. If a hus- 
band feels he cannot trust his wife's judgment in money matters, 
the first thing necessary is for both to study the problems of expendi- 
tures together, and to come to an understanding as to the practical 
rules that shall guide in the use of their common resources. 

A woman who is not to be trusted with her husband's earnings, 
his income and his property, is not to be trusted with his honor, his 
reputation or with his name. 

Before accepting this plan of the joint management of income, 
the phrase "husband's earnings" or "husband's income" must be 
eliminated from the family vocabulary. 

The method proposed is based first upon the contention that 
whatever money a husband may secure from his employer, or from 
his business, belongs as much to the wife as to the husband; that 
although her work may not have been directly contributed to her 
husband's employer, or to his business, the wife's efforts make it 
possible for the husband to give the very best that is in him to his 
employer, or to his own business. The idea that a woman can toil 
and slave and maintain a home for a husband ; that she can bear and 
rear and clothe and feed his children as well as care for himself; 
that she can wreck her physical life in the doing of it, and all this 
without monetary compensation, or a right to share in what her 
husband has earned, or without receiving equal credit for conserving 



16 THE BUSINESS OF THE HOUSEHOLD 

it, is a supposition that needs to be disputed. The productive labor 
of the wife within the home must be counted an off-set to the hus- 
band's earning ability for together they secure the living of the 
family. 

Whatever wages or salary or income a husband may bring into 
the family, already has been in part earned by the wife. 

Until the above principle is recognized there can be no per- 
manent efficiency of an economic nature in the home. 

If either party at the time of marriage is possessed of money 
or property, personal or real, it may well become the joint posses- 
sion of husband and wife as in a business partnership. Whatever 
money is possessed by either party at the time of marriage ; what- 
ever money is received by either party during the marriage rela- 
tion, whether earned as wages or salary or received from income or 
dividends, gifts or bequests, should be placed in the bank, in one 
common fund, subject to use and withdrawal by either party, with- 
out the explicit consent or signature of the other party. This is the 
ideal toward which society is moving. 

Many husbands undoubtedly may shudder at the bare thought 
of such a high-handed method, and yet they will not for one 
moment hesitate to admit that they trust their wives implicitly. If 
so, there is no excuse for any other method of managing the house- 
hold funds. This method, of course, means the opening of a bank 
account, if one does not already possess one. The subject of the 
bank account will be considered in the next chapter. 

A joint bank account should be opened in the name of both hus- 
band and wife, or the account may be opened in the husband's 
name in which event the husband should give his written consent to 
the banker to have his wife sign his name to checks. The joint ac- 
count is preferable as the wife's signature would then be legal in 
case of the death of the husband, which probably would not be the 
case under the other method. With this arrangement in force, 
either party will at any time be able to withdraw any or all of the 
funds in the bank to the credit of the individual or joint individuals 
as the case may be, and the signature of the other party will not 
be necessary. In the partnership of which we are speaking, neither 
partner will take advantage of the other. 

Every dollar earned by the husband or received by him or by 
the wife should be deposited to the credit of the bank account. It is 



THE FAMILY INCOME 17 

not intended that merely the wife's weekly or monthly allowance be 
deposited in this way, as this plan does away with such things as 
allowances, but it does mean that all income from every source be 
deposited. 

Having accomplished this much, all expenditures and the pay- 
ment of all household bills should be made by check. The method 
of accomplishing this will be explained later. Of course, where 
there are petty items to be paid for in cash, such as articles pur- 
chased from hucksters, the home manager should arrange to draw 
sufficient cash every week, with which to defray such expenses, in- 
cluding car-fares and similar needs. 

" What is mine becomes yours, and what is yours becomes mine," 
should be the principle upon which to base all future problems of 
household finance. 

Real Estate and Personal Property. — In order to carry out 
the spirit of this plan, all real estate and personal property should 
be held in common by both parties. 

Eeal estate in the name of either husband or wife, at the death 
of the party holding the same, becomes subject to probate but 
unless disposed of by will the courts must determine who are the 
rightful heirs of the deceased. The law varies in different states 
regarding the inheritance of real estate, and whether one leaves 
a will or not, there are certain legal formalities that must be 
observed before the heirs are able to perfect their title. In order 
to avoid this, and to prevent all litigation, a joint tenancy deed 
should be executed covering all real estate owned by either party, if 
the law of the state recognizes such a deed. By this arrangement, 
the real estate is held in the name of both husband and wife, and in 
the case of death of either party, the real estate becomes the property 
of the surviving partner without any further legal action of any 
kind. 

Real Estate Held " In Common." — Eeal estate held in the 
name of both husband and wife, other than in joint-tenancy, at the 
death of either party, becomes subject to probate, the same as though 
it had been held in the name of either one or the other. In such 
cases, the court must determine the share originally held by the sur- 
vivor before making disposition of the share left by the deceased. 

There is a vital difference between Joint-tenancy, and real estate 
held " In common!' The former is only possible when provided for 
by state statute. 
2 



18 THE BUSINESS OF THE HOUSEHOLD 

Summary. — With all real estate and personal property held in 
this way and all money received turned into one common fund, 
subject to the demand of either partner with or without the consent 
of the other, we have a fair, just and business-like arrangement for 
both parties ; one that is based upon faith and trust in each other ; 
an arrangement that is, and always has constituted, the basis of 
every business partnership. 

QUESTIONS 

1. Name the various plans adopted for the distribution of the family 

income. Which one would you favor? Why? What objections can you 
offer to the various methods mentioned? 

2. For your own information, ascertain the methods used in your own 

home. 

3. Do you think that a wife is entitled to an equal right with her husband 

in his earnings? If so, why? 

4. Is the law governing the inheritance of property the same in all states ? 

5. How should real estate be held by married people? 

6. For your own information, if possible, find out what proportion of the 

real estate, in case of the death of a father, would go to the wife and 
what proportion to the children. 

7. What is a joint bank account? 

8. If a bank account is in the name of a husband how may it be arranged 

so that the wife may draw checks upon that account? 

9. Does the law of your state provide for holding real estate in joint 

tenancy ? 

THEMES FOR DEBATE 
Resolved: 

1. That the Allowance plan of apportioning the Family Income is not 

economically sound or just. 

2. That the wife should have as much right and freedom in and to the 

family income and property as the husband. 

3. That property, real estate or personal, belonging to the wife before 

marriage should after marriage be pooled with the husband's re- 
sources as the common property of both. 

REFERENCES 

King, W. I., Wealth and Income of the People of the United States. 

The Macmillan Co. 
Richards, E. H., The Cost of Living. J. Wiley & Sons. 
Richardson, B. J., The Woman Who Spends. Whitcomb & Barrows. 
Streightoff, F. H., Standard of Living of the Industrial People of 
the United States. Houghton, Mifflin Co. 



CHAPTER IV 
THE BANK ACCOUNT 

A bank account is a very necessary factor in the management of 
any home. This suggestion holds for the man on a small salary the 
same as it does for a man of means. Many a man probably will say 
"0, I don't earn enough/' or "I can't get enough together at any 
one time to warrant me in opening a bank account." Many think 
the bank will not care for a small checking account. Not so; the 
time has gone when the average banker refuses an account because 
of the limitation of the daily balance, except in the larger cities. 
Even then, the small fee of a dollar a month where the daily bal- 
ance is less than $200.00 may be well spent in getting this account 
started. The modern banker especially in the smaller cities and in 
the suburbs of the larger cities, invites family deposits. 

Any man earning twenty to twenty-five dollars or more a week 
should maintain a hank account, and pay all hills by check. 
Every farmer s family should have a bank account. 

In fact, it is just these men that need the services of the bank the 
most, as is shown in the discussion of "Credit." 

Opening an Account. — Every married couple, then, if they 
have not already done so, should at once open a bank account. Hus- 
band and wife should visit the banker together, introducing them- 
selves or having some friend do this for them. They should state 
their circumstances to the banker without reserve. The husband 
should give the name of his employer, with any information re- 
garding his work or position or prospects that might seem of in- 
terest to the banker. If in business for himself, the husband should 
give the banker a statement of the financial condition of his bus- 
iness. If real estate is owned by either party this fact should be 
made known. 

A joint account should be opened in the name of both parties as 
explained in the previous chapter, or it should be arranged so that 
both parties can sign checks against the account. The signature of 
both parties will be required by the bank to be placed on file for 
identification purposes. Either party will now be able to draw 
funds without the signature of the other party. 

A few words may be said in explanation of the various processes 

19 



20 



THE BUSINESS OF THE HOUSEHOLD 



DEPOSITED IN THE 



Evanston Trust & Savings Bank 

By 




EVANSTON, ILLINOIS 



^ iq/K 



Plea&e" - List Each Check Separately 



Currency 


DOLLARS 


CENTS 


Gold 


y c 


c> c 


Silver 


<r 


?^\jr 


Checks 


/r 






7^ 



See that all Checks and Drafts are endorsed. 



Fig. 1. — A deposit slip properly made out 



THE BANK ACCOUNT 21 

with which the depositor will come in contact from time to time 
and the steps that must be taken for the first time by anyone who 
has never had a bank account. 

Deposits. — In depositing money, checks or drafts in a bank, a 
memorandum furnished by the bank and called a "deposit slip" 
must be made out by the depositor. The following data should be 
entered on such a slip. 

1. The name of the person whose account is kept. 

2. The date of the deposit. 

3. The character and amount of the deposit, entered as indicated 
by the printed slip, which generally is as follows: (a) currency, 
(paper money); (b), gold; (c), silver; (d), checks, (drafts, post 
office money orders, etc.) listed by items. 

4. The total of the deposit. 

Fig. 1 is a reproduction of a deposit slip properly made out. 

Having made out the deposit slip it should be handed with the 
deposit and bank book to the "Keceiving teller" who will enter the 
amount of the deposit in the bank book. 

Some banks do not balance" bank books at the end of the 
month, unless requested to do so; a statement made on the adding 
machine is used instead. With such banks the bank book is rather 
a useless thing. If one does not wish to keep up the bank book, an 
exact duplicate should be made of the deposit slip. The teller then 
signs this slip which is retained by the customer at least until the 
month's statement has been received and checked up. If the de- 
posit shows on the statement the slip may be destroyed. 

Checks. — A check is merely an order on the banker to pay to 
some one a certain sum of money, and this order is signed by the 
-depositor against whose funds the check is drawn. 

In filling out a check, which already bears printed upon it the 
name of the bank, the name of the place where it is located, and the 
order to the banker to pay, there are five spaces to be filled and six 
that may be utilized as follows: 

1. Date. 

2. Number of the check (if one desires to number all checks). 

3. The name of the person to whom the payment is to be made. 

4. The amount to be paid written out in full. 

5. The amount to be paid written in figures. 

6. The signature of the party drawing the check. 
Fig. 2 is a copy of a check properly made out. 



22 THE BUSINESS OF THE HOUSEHOLD 

Making Out Checks. — No space on the check should be left so 
that the amount of the check could be raised by adding another 
figure before or after the amount. For instance if the amount, 
"One and 56-100" was written in such a manner it might be raised 
to read "One Hundred One and 56-100" or "One Hundred and 
56-100" by inserting the extra word or words before or after the 
original amount, if sufficient space is left by the one making out 
the check. 

Endorsing Checks. — Checks payable to "bearer" should not be 
endorsed until one is in the bank ready to present them for payment 
or deposit, because if lost anyone may cash them. 

When endorsing checks, turn the check down on its face and 
write your name on the back at the top of the left end of the check. 







tvm&roH, ftW 


_£?**..,-.;&* 


':.- 


vnS 


**,/*■& . .. 


! 


70-1M* 


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>mh, 


10- 11 1 




omsmm 


/. 3S py^e^ 


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: iMM~?-^~~~ — — ~- 






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i 

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1 


kT^ '/' . r~-- 


.. D&UA&$ 


1 


PAY A 6 
CHNCAO© 


JUE THROUGH 
CLEAfttN<5 MOUSE 


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... ^~-.~J^ 


./ / . 


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Fig. 2. — A check properly made out 

When sending checks through the mail for deposit, endorse them 
payable to the bank as follows: 

Pay to the order of 
The City Nat'l Bank for the credit of 
John Jonquil. 

A rubber stamp may be made for this purpose if desired. If lost 
in transit checks so stamped cannot be cashed by the finder. 

Notations may be made upon the end of the check to the left 
or in the lower left-hand corner. If the words, "Payment in full" 
or "Payment in full to date" is so written on a check, the endorse- 
ment of the one to whom the check is made payable, is a receipt 
in full for payment of an account due to that date, and the payee 
cannot recover more money from the payer in payment of that bill. 

An endorsement on the hack of a check is a legal receipt of 
the amount of money for which the check is drawn. 



THE BANK ACCOUNT 23 

Do not make a check "Payable to bearer," as it then becomes 
the property of anyone holding it, and no endorsement is necessary, 
so that the check itself does not serve as a receipt for the money paid. 

Checks Payable to Officials. — Checks made to officials, such as 
the treasurer of the county, of a lodge or club, should specify the of- 
ficial position of the drawee or individual to whom the check is made 
payable as follows : 

"John Smith, Treasurer of Cook County." 
or 

"James Jones, Collector Evanston Township." 

If it were made out in the name of the individual without stating 
the official position, it would be evidence that the check was intended 
for personal use, and if it were appropriated for personal use, in 
order to recover the amount of the check, one would have to prove 
it was intended for the official and not the personal use of the 
individual. 

Checks Delivered to Collectors. — Some companies employ of- 
ficial collectors, but in paying bills to such collectors, it is better to 
make out the check in the name of the company to whom the money 
is due, and in no case in the name of the collector, unless the word 
"Collector" is inserted after his name. Even then it would be better 
to write the name of the company also, as "John Smith, Collector, 
Smith & Co." 

Altering Checks. — If a mistake has been made in writing a 
check, tear it up and make out a new one. Many bank checks are 
printed on a chemically prepared paper especially designed to show 
any alteration or erasure, as a protection against attempts to alter 
or raise the amount of the check. 

Holding Personal Checks. — One should not hold checks but 
should present them to the bank for payment at once. Unless pre- 
sented in the usual course of business, the courts would not protect 
one in recovering the amount of a check in case there were no funds 
to meet the check when it was presented. Funds might have been 
in the bank to meet the check at the time it was drawn, but if the 
holder failed to take reasonable precaution in presenting it for pay- 
ment in the ordinary course of business, the holder of the check 
could not recover on it if there were not funds to meet it upon its 
delayed presentation. 

Exchange on Personal Checks. — One should not send per- 
sonal checks away from home in payment of bills or orders, as banks 



24 THE BUSINESS OF THE HOUSEHOLD 

charge "exchange" or a small fee for collecting and handling such 
checks, unless they are made payable through the "clearing house" 
of some central city. One can secure a bank draft from one's bank 
for this purpose. 

The Clearing House. — In the larger cities, the banks in good 
standing form an organization in their city called a "Clearing 
House." Such banks are constantly receiving the checks and drafts 
of each other, and instead of sorting them out and returning them 
to each bank individually for payment, they are sent to the Clearing 
House, where representatives from all banks in that city who are 
members of the Clearing House meet at certain hours and take from 
each other all checks and drafts drawn on their own bank. Per- 
sonal checks that bear the printed words, "Payable through the 
Chicago Clearing House" would not be subject to exchange for col- 
lection. The same would be true if "New York" appeared on the 
check instead of "Chicago," as these two cities represent the centers 
of exchange for the entire country. 

Check-Stubs. — Before making out a check, fill in the stub ex- 
actly as the check is to be drawn. The number on the stub should 
agree with the number on the check. 

In asking for a check book for family use, it will be found much 
more convenient to use a book having three checks to the page than 
one with only one to the page. 

Fig. 3 is an illustration of the stubs of three checks made out 
properly in their order as they would appear in a three-check-to-the- 
page book. 

Most check stubs, especially in books with one check to the page, 
have a printed space for entering deposits. 

Notice that in the illustration the deposit is entered on the stub 
in the vertical column, to the right. In the same column are listed 
the three checks drawn, and the total is deducted from the deposit 
or balance in the bank, leaving a balance of $139.94 to be carried 
over to the next page of stubs. 

For ordinary purposes this is about all that is necessary to know 
to enable the average depositor to keep his bank account. Methods 
for checking up the account at the end of the month will be given 
later. Bank officials are always glad to instruct any one in the 
mysteries of making out checks and deposit slips. 

Paying Household Bills by Check. — First form the habit of 
paying bills once a month instead of weekly, or with cash. Wait 



THE BANK ACCOUNT 25 



_ __£La: 




^ 


..._19ll 


OH1>EROF_£ 


1& 


1 v±:i 


^M^ 


FoR„ ^L.„ 









syj^t 





?fo._.i 


//" 


~-y 


Ori>.bkof_ 




For. .jL &. 





I9l2k 



^o. : „J 




- : - 




(T • ; ^f 




_ imJL_ 




0RI>£KOF_ ^".:..:::, 




c_.J£jl-„ 




For_ IjLd?- 




- y 


— |i 


(?J &;~/~ /- 


-/^ 










Fig. 3. — Stubs of checks made out properly 



26 THE BUSINESS OF THE HOUSEHOLD 

until all bills are in, which generally will be not later than the first 
week of the month. For convenience, sort these bills alphabetically 
according to the names of the firms and individuals. 

Every family, if at all possible, should possess some kind of a 
typewriter. Its value will be evident in many ways, especially if 
there are young people in the family. The fact is mentioned be- 
cause of its value in making out checks. It is no trifling matter to 
draw thirty or more checks at a time with pen and ink. 

Check the bills up and see if they are correct. Department store 
bills especially should be scrutinized to see that credit has been 
given for returned goods. If not, mark the item "Returned" and 
deduct the amount from the bill. 

Now find the number of the next check to be drawn from the 
stub in the check book. 

On a sheet of paper in the typewriter or with a pen, list the bills 
as follows : 

210 Ames & Co $21.05 

211 Bacon & Ham 11.67 

212 Carson, P. S. & Co 20.55 

213 Dawson, Jno 1.00 

214 Egg Dairy Co. .. 3.60 

215 Field & Jones 11.10 

216 Gaslight Co 2.60 

217 Harden & Law 25.00 



Total $96.57 

It will be noticed the checks are listed in numerical order as 
well as in alphabetical order. 

Now tear from the check book, eight) checks with which to pay 
these eight bills, if they are to be filled in on the typewriter. Insert 
in the machine a sheaf of three checks and fill in the amount, name, 
number and date of each check. If a typewriter; is not used the 
checks can be filled in while still attached to the stubs. Do not, 
however, fill in separate stubs for these checks. 

Having made out the checks, trim the sheet of paper with the 
checks listed on it, paste the list upon the last stub, and deduct the 
total from the balance. This saves making a separate entry on the 
stub for each of these checks. 

Now address envelopes for the bills, sign the checks and enclose 
them with the bills, ready for mailing or personal delivery. 



THE BANK ACCOUNT 27 

Figs. 4 and 5 are two sample checks made out on the type- 
writer, one of them for an amount less than one dollar. Bankers do 
not like to have checks made payable for less than one dollar, but 
when they are made care should be taken to mark out all dollar signs. 

Probable Number of Monthly Checks. — The family of 
average means will in time draw from fifteen to thirty checks a 



fZVAN$TO**JtU March Srd. , !9?S M<X 1M . „ 
. TheOty^alional Bank,— <•> 

r rft£0!?8&i*$r i>oteQnJ& terns „ ... $ fi6 *?*„ ^ 

Twenty,,, fire ittd... 67-100 :.s : ; : : : : : : : j; : : : : : : : : ; : :'•: : : : ; : i : : ::::::;;;: D<^ A ^ S 

CKICAOO CU*Rt«G HOUSE. 



Fig. 4. — Check made out on the typewriter 



ttVANSTONjUU .March.. 3rd, \&\B £feX35 

The Cito 'National Bank, 



_ y 70~U4 

or itva n&rwt * ilmho 1 s < 



a 



THEORDSHQf _ vofcn -Smith & Co* „2f$C*BS.C¥S* " 



CAOO CUARINS i 



Fig. 5. — Correct way to make a check for an amount less than one dollar 

month in payment of household bills. As nearly as possible all 
checks should be made out at the same time and once a month. Of 
course, there will be straggling bills coming in during the month, 
but tradesmen should be encouraged to render monthly bills. As 
already -stated, a check can be drawn for "cash" once a week or 
twice a month, and from this cash, petty expenditures may be made. 
The cash expenditures can easily be entered as memoranda from 
day to day on one sheet of paper and, at the end of the month, 
entered in the account book. 



28 THE BUSINESS OF THE HOUSEHOLD 

The Budget Check System of Paying Bills.— A recent in- 
novation in banking methods, of interest to the family that pays 
its bills by cheek, is the "Budget check system." Fig. 6 shows this 
check with its attached stub, and the budget items. 

With this system, instead of drawing a check at the end of the 
month for each bill, one check is made out for the total amount of 
all monthly bills. 

It will be seen that this check is made payable to the bank itself. 
Attached to the check is a list of the principal merchants in the 
town. Opposite the proper names the customer writes in the amount 
due each firm or individual according to their several bills rendered. 
These amounts are totalled, and the total represents the amount of 
the check. 

The names of the ones to be paid, with the amounts are then 
entered on the stub, and the total, representing the amount of the 
check is deducted from the balance in the bank as usual. 

The check with its attached budget is then turned into the bank, 
and the amount of the check charged to the customer issuing the 
same. 

If the ones to whom payment is to be made have an account with 
the bank, the amount due is credited to their accounts, and they 
are notified of the same. If a firm has no account with the bank ar- 
rangements are made with the bank to write in the name of the 
creditor and the amount due, and then the bank mails a Cashier's 
check to the firm in payment of the bill. 

Such a system saves much time for the customer, but it must 
never take the place of a family budget, nor be substituted for a 
system of household accounting. No classification of expenditures is 
provided, so that it is merely a convenience in paying the bills at the 
end of the month. 

Choosing Your Bank. — First, be sure that the bank with which 
you intend to do business is not a private bank. On the other hand 
be sure that it is a State or National Bank or one under the super- 
vision of the State or Government inspectors. There are many 
private banks that are sound and run by honest men ; but as they 
are not usually under state or other supervision, there is always an 
opportunity for dishonesty that generally is not discovered until too 
late. 

Second, if living in the suburbs, do not make the mistake of 
opening the family checking account with a large city bank if there 



Nc- 



Evanstoa, Ill.,_ 

'ANSTON TRUST & SAVINGS BANK 

trder of ycrarself $ /%?> s/V 6 * 



.191 



i 



DOLLARS, 



3 to ray account, crediting the items as per the list below i 

Signature^ — f*rfo+f ^Jo~Ct 



Hayes & Hayes 



Dollar^ 



Pierson, Joseph F. 



Hallrnan & Frederick 



Haas, Phil. 



Harloff Bros. 



Postal Telegraph Co. 



Rutter, David & Co. 



Rosenberg's Dept. Store 



Hoffman, James 



Huber, R. 



J£i£. 



& c} I Royal Dry Goods Store 



Hinckley & Schmitt 



Iredale, Geo. & Co, 



JL 



^y rRandlev, P. & Co. 



&JZi£' 



Iredale Fireproof W. H. 



Johnson, A. F. & Co. » 



Karger's Clothes Shop 



Kean & Howe 



Kce & Chapell Dairy Co. 



Kathryn Hat Shop 



Kearney, G. A. 



Kadlec, Louise C. 



if" '/ 4 — Lake Shore Creamery 



Randlev, P. & Sons 



Rhodin Bros. 



Russell, W. H. 



Rapp, P. G. & Bros. 



Standard Oil Co. 



Shellberg, J. A. Decor. Co. 



Schumer, M. 



Stokes, E. T. 



Reliance, The 



Schimberg, P. 



Scheibe, G. C. 



.A 



y.4^0 



Lee, John V. 



Streif, A. 



Lord, W. S. 



Suhr, H. J. 



-^ 



Leffingwell, R. L. 



Svedlund, W. P. 



Lorimer, Robert 



Samuelson, John 



Lincolnwood Dairy 



Theobold, A. A.. 



Macpherson, C. D. 



Zi£ 



Morgan, C. H. & Co. 



Tyler-Lefiingwell Co. 



Triggs, C. W. & Co. 



Meisner, Jacob 



Taylor, George 



McCann Co., The 



Torcom Bros. 



Miller, Peter 



Victor Pharmacy 



[ Moore, A. H. 



Van Deusen. A. S. 



Mutual Laundry 



Washington Garage' 



\£Sp£t 



McEnery, D. F. 



Woods Electric Garage 



McPherson, M. & Co. 



Mestjian Bros. 



Metz, George 



Northwestern Garage 



JL 



i?^£ 



North Shore Creamery 



Neverman, E. A. 



Woman's Exchange 



Wetland, John 



Weiland, M. 



Welter, N. K. 



Westreicher, John 



'r 1 - 



Winter, Geo. B. 



North Shore Hardware Co. 



Workers Co-op c Mef. Co. 



Nelson Bros. Laundry 



Washington Laundry 



Nelson, N. P. 



Wieland Dairy Co. 



North Shore Review 



Walters & Anderson 



O'Connell, W. J. 



O'Malia, M. L. 



Western Union Tel. Co.,, 



Powers Ice Co. 



*nq. 



Parker & Co. 



Public Service Co. 



Palace Cash Market 



-^-JTz 



Parnham, F. J. 



Pennsylvania Oil Co. 



Jf& OO 



zz 



kjf 



y/ /& 



the amounts to firms or individuals as indicated above and charge the same to my account 



Signahm 



get check system 




sKLsr 



Aj^Seutf 1 




Evaostoa, III., 

EVANSTON TRUST & SAVINGS BANK 



» the order of yourself %JL 



crediting the iti 



list below 





















AvenueGarage 




'< 


hT' & £ f" " '"'" 






..phF. 






Arnold. C. E. 




j 


Haas, Phil. 






Rutter, David & Co. 
































-',{- 




'.II 1 1 ,r 
















^ a j-Randle .. 












linekley & Schmitt 


/ 




Randies-, P. it Sons 












redale, Geo. & Co. 




































ohnson, A. F. & Co. • 












Brown Si Son, W. C. 












Standard Oil Co. 








,9 
















Borden's Cond. Milk Co. 






Cee & Chapell Dairy Co. 
























Stokes, E. T. 






Chgo. Elec. Motor Car Co. 












Reliance, The 


















Schimberg, P. 


6 




Colwell's Drug Store 












Scheibe, G. C. 
























Connor, T. E. 






























Svedlund, W. P. 






Cook, W. H. 






























Theobold. A. A. 






Consumer! Co. 






4acpherson, C. D. 






1,:., UBingwellCo. 






... .Me Water 












. W. &Co. 






rhiL.iKo 1 1. i.hoii, < .■ 


>t 










Taylor, George 






Dart. A. J. 






HcCann Co.. The 






Torcom Bros. 






■• ' W ' 




1 


Miller, Petet 






V Pharmacy 







; .,,.."..0 i:-,:,.; - - .:., 






Mutual Laundry 






| . hi , Garage" 








\f 




HcEnery, D. F. 






In trie Garage 






Ill,, - , Wash Laomi, 




































Evanston News Co. 






vletz, Geotge 


/ 










• >.'..ilv N.- 






Morthwestern Garaec 






Welter. N. K. 


,f 


p,r 








Morth Shore Creamery 


















Meverman, E. A. 






Winter, Geo. B. 












»nrth Shore Hardware Co. 






< 1 1 






Freeman, John 


















Fuller. C. F. 












Wieland Dairy Co. 












forth Shore Review 












Feht, Frank 






3'Connell. W. J. 


















D'Malia, M. L. 








-*& 










Powers Ice Co. 


yf 








Galitz, E. H. 






Parker & Co. 












Geimer. M. 










r« 








Getdl. S. P. 






Palace Cash Market 


















farnham, F. J. 












Galitz & Mahon 
















1 y-r 


fO 




Vv 






f\9 


<4'<t 
























THE BANK ACCOUNT 29 

is a substantial State or National Bank in your suburb. Doing bus- 
iness with the smaller institution and the one in your immediate 
vicinity is more convenient. The smaller bank will be more anxious 
for your account, and it may be able and willing to show you 
courtesies that could not be extended by the larger institution. 

Advantages of the Bank Account. — The possession of a bank 
account gives one standing and credit with every one who does 
business. Payment of bills by check is business-like and teaches 
one to be methodical and careful. It makes for efficiency, induces 
saving and prevents losses. When endorsed, checks are receipts 



>- 

^ (gj EVAXSTOXjLL.._^JJJ ___I9I NO 

yj Eyanston Trwt & Savings Bank to-i.s 

=> I— 

f¥=PAYTOTHE F»AV TO g^SELF ONLY 

j-iJ ORDER OF C5 $ 

J— AND WITHOUT ANY|gMDORSEMENT HEREOF 

=5 2 

Q t= Dollars 

f ^ TO BE USED ONLY AT THE COUNTER OF THE |M 

^^ EVANSTON TRUST Sc SAVINGS BANK — ^ 

EVANSTON^AN^^^AWJR^RSONALLY. O 

^ CHICAGO CLEARING HOUSE <ZZ 



Fig. 7. — Counter Check 

and are the best possible evidence that can be presented in court as 
proof of a payment. 

A bank account helps to build up one's credit. In case of need 
one may be able to borrow from the bank as most business men do 
from time to time. This subject is discussed in the section on credit. 
There are so many advantages of keeping a bank account that one 
must first gain the experience before one can appreciate these 
advantages. Once tried, it will be hard to get one to go back to the 
old methods. 

Bank Counter Checks. — Counter checks of different forms are 
used by bankers for the accommodation of customers who do not 
have their check-books with them or who have neglected to bring 
a blank check to the bank. One type is shown in Pig. 7. 

In this case the check is made payable to the drawer who is also 
the drawee and it reads "Pay to myself only" and it is also marked 
"Not negotiable" that is, not transferable to another party. The 



30 THE BUSINESS OF THE HOUSEHOLD 

check is also marked " and without any endorsement/' so that the 
drawer need not endorse the check. Had the check not been printed 
with the words " and without any endorsement " it would be neces- 
sary for the drawer to sign it on the back. 

It is a bad practice to use counter checks, as one is apt to forget 
to enter them on the stub of the check-book. Where special counter 
checks are not available, the bank provides ordinary checks for this 
emergency use. 

Certified Checks. — One takes a chance in accepting personal 
checks from strangers, as the recipient of the check may have no 
means of knowing whether the drawer of the check has that amount 
of money in the bank. In order to obviate such difficulties certified 
checks are often used. 

The customer makes out a check in the regular way and takes 
it to the cashier of the bank and asks to have it certified. The 
cashier satisfies himself that the customer has enough money in the 
bank to pay the check, and then writes across the check or stamps 
upon it the word "certified" and signs his name under it as Cashier 
of the bank. The check is handed back to the customer who de- 
livers it as he sees best, but the Cashier immediately charges it to the 
customer's account instead of waiting until the check comes back for 
payment. 

A Bank Draft. — A bank draft is a bank's own check drawn upon 
funds deposited to its credit with some other bank in some other 
city. An individual may not be known in another part of the 
country ; his credit there may not be established as it is in his home 
town, so that if he sends his individual check away from home it may 
be questioned, and delays may occur due to the fact that it would 
have to be collected by the bank in the distant city. The expense of 
making collections on personal checks varies. 

On the other hand, a bank can very easily determine the credit of 
another bank wherever it may be, and its checks or drafts, usually 
payable at some large city bank, are generally accepted without 
question, anywhere in the country. 

If one's personal check is "certified" (see above) by an officer 
of a bank, it virtually assumes the status of a bank draft, as the 
bank becomes responsible for the check's payment. Upon certifica- 
tion, the bank at once charges the amount to the customer's account, 
instead of waiting for its return through some customer or some 
other bank, as already explained. 



THE BANK ACCOUNT 



31 



If your personal check bears the printed words "Payable 
through the Chicago Clearing House" or "Payable through the New 
York Clearing House" exchange should not be charged by another 
bank for the collection of the check, as banks do not charge for the 



Form 11 10 M 63-16 



NO.- 



EVANSTON TRUST & SAYINGS 
BANK 

(SAYINGS DEPARTMENT) 

CREDIT ACCOUNT OF 



EVANSTON, ILL., 



_1 1_ 



CURRENCY 

GOLD 

SILVER 

CHECKS .. 



BALANCES. 



Fig. 8. — A Savings Bank deposit slip 

collection of New York or Chicago exchange. Otherwise, if you do 
send your personal check away from home add at least ten cents to 
the amount of the check if it amounts to one hundred dollars or 
more, to cover the "exchange" charged by the bank for collecting it. 



32 THE BUSINESS OF THE HOUSEHOLD 

Visit your local bank. Examine the checks and deposit slips on 
the customer's counters and ask one of the clerks or officials to 
explain to you their purposes and uses. A bank account is the 
simplest method of keeping one's money and of keeping a record of 
household accounts. It furnishes the simplest system for paying 
one's bills, and it is by all means the safest and most business-like 
method of caring for one's finances. 

Savings Bank Accounts. — In opening such an account, a de- 
posit slip similar to the ones used in commercial banks is used, as 
shown in Fig. 8. 

A Savings Bank Book is issued to the customer, and a number 
given to the book, the same number appearing on the deposit slip 



Evanston, 111., 191 

Received from the 

Cbanston Crust & g>abtttg0 femh. 



EVANSTON. ILL. 

(SAVINGS DEPARTMENT) 



which amount has, in my presence, been charged on niy Pass Book No._ 

Balance, & 



.Dollars $_ 



Owner of Said Pass Book 






Fig. 9. — Form of receipt signed upon receiving money from a savings 

account 

with the name of the customer. The amount deposited is entered 
in the book. This book may be transferred to another party, with 
the account represented by it, but if the book is lost, the finder will 
be no more able or entitled to draw the funds than in the case of a 
regular commercial bank account. 

In drawing money from a Savings Bank account, the pass-book 
must be presented at the bank, and a check in the form of a receipt 
similar to Fig. 9 is filled in and signed by the customer and de- 
livered to the teller, who enters the amount upon the pass-book and 
returns it to the customer with the money called for by the check. 

As stated elsewhere, savings bank interest is usually from 3^4 
to 4 per cent., and payable semi- annually, January and July first. 

The savings bank account is the simplest, safest, and most avail- 
able method of saving and every family should have such an account. 



THE BANK ACCOUNT 33 

Investments. — A bank is in a position to offer choice invest- 
ments in bonds of every description drawing interest at 3 per cent, 
and up, compatible with safety. Investments are discussed else- 
where. 

Safety Deposit Boxes. — A safety deposit box, that is, a small 
compartment in the vaults of a bank, can be rented for three dollars 
or more a year. Every family should have a place to deposit valuable 
papers ; this may be a safe in the house, but the safe-deposit box in 
the bank is better. 

Many banks are equipped for caring for silverware, expensive 
paintings, and works of art. Investigate the resources of your bank 
in these regards. 

Estates and Trusteeships. — Although Trust Companies are 
especially authorized by law to act as trustees, executors and guar- 
dians, any bank is in a position to advise one in regard to the 
necessary steps to be taken in such emergencies. 

Business Advice. — Make it a rule never to invest money or to 
loan it without first consulting your banker. There is no business 
problem about which your bank will not be glad to advise you. 
Adopt the slogan of every good banker — "Safety First" — and if you 
consult your bank before making any important business venture, 
you cannot go astray; in other words make your bank your silent 
partner, friend and adviser. 

QUESTIONS 

1. What is the difference between a savings bank account and a checking 

bank account? 

2. Should one who only has a small amount of money open up a bank 

account ? 

3. What are some of the advantages of a bank account? 

4. What is meant by "Currency"? What is a "Deposit slip"? What are 

the duties of "Receiving," and of a "Paying" teller? 

5. How may a bank check be made to serve as a receipt? 

6. What are the advantages of paying household bills by check? 

7. Why should private banks be avoided? 

8. What is meant by the "stub" of a check-book? 

9. What is the difference between a check and a draft? What is meant 

by a check payable to bearer. What is an endorsement? 

10. In making out a check what data or information should be listed upon 

the stub of the check? 

11. Why is it especially necessary to check up the items in department 

store and similar bills? 

12. What are the advantages of paying bills at the same time once a 

month ? 



34 THE BUSINESS OP THE HOUSEHOLD 

PROBLEMS AND DEMONSTRATIONS 

1. Procure a blank check of a commercial bank and make it out payable to 

John Doe for thirty-five dollars and sixty-eight cents. 

2. Make out such a check to the same party for ninety cents. 

3. Procure a deposit slip from a commercial bank and fill it out for the 

following items: 

Currency $25.00 Express Order $16.00 

Gold 20.00 Postoffice Order 5.40 

Check on Philadelphia. . . 26.45 Silver 5.67 

4. Demonstrate to the class the use of the Saving's Bank Book, deposit slip, 

and method of checking out funds. 

5. Ascertain if any bank in the community uses the budget-check system, 

and if so, secure a sample budget-check. 

6. If possible secure blank check-book stubs for six checks but if this is 

not possible, copy on paper the form used for check-book stubs for 
six checks, and make the following entries. 

Deposits Checks 

Jan. 2, 1918. .$250.00 Jan. 2, 1918, John Smith (Grocer) . . .$25.00 
Jan. 9, 1918. . 25.00 Jan. 2, 1918, Geo. Moore (Butcher) . . . 7.50 

Jan. 9, 1918. . 25.00 Jan. 5, 1918, Myself (cash) 5,00 

Jan. 7, 1918, Jno. Doe (Jan. Rent) . . . 25.00 

Jan. 8, 1918, Chas. Jones (Baker) 2.50 

Jan. 9, 1918, Jno. White (Laundry) . . 10.00 
What is the balance in bank Jan. 10, 1918? 

7. Make out a bank check payable to John Smith, and endorse the check 

as John Smith payable to Mary Smith. 

8. Endorse the check mentioned in Demonstration No. 1 payable to John 

Doe, for deposit in some local bank in your community for the 
credit of John Doe, assuming that you intend to mail the deposit 
to the bank. 

9. If John Doe was an agent for the Smith Company, and the check men- 

tioned in Demonstration No. 2 was in payment of a bill from the 
Smith Company, demonstrate how you would protect yourself, as- 
suming that John Doe's name had already been written in the check. 

10. Find out from a local bank what are their rules for charging exchange 

on checks. 

11. Ascertain if the local bank or banks have safety deposit boxes, and if so, 

the annual charge for the use of such a box. 

12. Find out how much the local bank or banks charge for drafts of $100.00 

or less; $500 and $1,000. 

REFERENCES 

Atwood, A. W., How to Get Ahead. Bobbs, Merrill Co. 

Brown, M. W., The Development of Thrift. The Macmillan Co. 

Farmer, L. C, A. B. C. of Home Saving. Harper & Bros. 

Wilbur, M. A., Everyday Business for Women. Houghton, Mifflin & Co. 



CHAPTEE V 

CHECKING-UP A BANK ACCOUNT 

Checking up a bank account is a very necessary process, but it 
is one that few people understand. It is also rather a difficult process 
until one becomes accustomed to it, but it is more difficult to ex- 
plain it to another than to do it one's self. Banks are not in- 
fallible. It is possible for a bank to make a certain type of mistake 
that might not be discovered for several weeks or even months. For 
instance, a deposit might be credited to another customer and that 
customer might be away for several months, or perhaps like your- 
self he may not be in the habit of checking up his account at the 
end of each month. The bank's books would balance, therefore the 
bank would probably not discover its mistake before you or the other 
customer brought the error to its attention. If the other customer 
happened to be dishonest or careless, and if he should withdraw his 
money from the bank and leave the country, the bank would have a 
difficult matter either to find to whom they had credited this de- 
posit, or if they did find it they would have trouble in recovering it. 
In any event, it would cause much annoyance for all concerned; 
hence the necessity for checking-up a bank account every month 
upon receipt of the bank's statement. 

The first of each month most banks issue a statement for each 
customer showing the dates and amounts of all deposits made during 
the previous month and the dates and amounts of all checks cashed. 
The cancelled checks are delivered with this statement to the cus- 
tomer. Where the statement is not used the bank "writes-up" the 
customers pass-book, entering therein the deposits and checks. In 
either event, the balance on hand the last day of the month is shown. 
Some banks balance an account only on request of the depositor, 
and so the statement is received at irregular intervals ; but in the ex- 
planation herewith a balance at the first of the month is assumed. 

In checking up your bank account, the first thing to do is to take 
the cancelled checks returned from the bank, and if you have num- 
bered them, sort and arrange them in numerical order, the lowest 
numbered check being face up on top. 

Now turn to the stubs of your check book, beginning with the 
first day of the previous month. These stubs are supposed to be 

35 



36 THE BUSINESS OF THE HOUSEHOLD 

numbered to correspond with the checks. Compare each check with 
its corresponding stub. If the amounts agree, draw a large check 
mark across the face of the stub of that check. Lay the check face 
down and compare the next check. Continue in the same way, 
checking off each stub for which you have a cancelled check. If 
the checks are not numbered, then they should be arranged ac- 
cording to the date issued and compared with the stubs in the same 
way. 

Having checked off all cancelled checks, turn back again to the 
first stub of. the previous month. On a blank sheet of paper, copy 
off the number and the amount of each stub that lias not been 
checked off and add up the total. This will show the checks issued 
that have not been paid by the bank up to the first of the current 
month. 

Now take the bank's statement and compare the deposits credited 
there with the deposits entered on the stubs of the check-book. 
Often bankers charge "exchange" on checks deposited and deduct 
the exchange from the deposit, so if the amount of the deposit on 
the statement does not agree with the entry on the stubs, make a 
note of it on a blank piece of paper. Perhaps you have mailed a 
deposit the last day of the month that did not reach the bank until 
the first of the month. This would not appear on the statement for 
the month but would appear on the next month's statement. As 
you have probably added it to your balance on the stub of the check- 
book before the first of the month, there will be a discrepancy be- 
tween your check-book and the bank statement. Make a note of 
this amount also. 

The differences that may exist between a depositor's check- 
book stub and the statement of the bank, may be of the following 
nature : 

First, checks previously drawn by the customer but not cashed 
by the bank until after the first of the month when the book was 
balanced. 

Second, deposits entered on the check-book stubs that had not 
reached the bank at the time the statement was made. 

Third, exchange deducted by the bank from deposits, not de- 
ducted from the deposit entry on the check-book stubs. 

Fourth, items deducted from your account by the banker, such as 
interest charged, etc., not deducted on your check-book stubs; 
similarly, items added by the bank, not added on your check-book 
as interest earned. 



CHECKING-UP A BANK ACCOUNT 37 

Fifth, mistakes in addition or subtraction on your check-book 
stubs, showing your balance in the bank to be either more or less 
than it should be according to the nature of the mistake made. 

In addition to the discrepancies that may have been found in 
checking up the account, such as outstanding checks, deposits, ex- 
change, interest and similar items, there are two other factors to 
be taken into consideration : First, the balance shown on your stub 
for the first of the month, and second, the balance in the bank shown 
by the bank statement of the same date. 

Now comes the balancing of the account, that is, comparing the 
record according to your check-book stub, with that according to the 
bank's record in order to find exactly where you stand. By putting 
down the figures on a sheet of paper with an explanation as to 
what each means, most people can readily work out for themselves 
an answer to this question, — How can the balance shown by the 
check stub be reconciled with that shown by the bank's statement; 
so that, if an error has been made in either record, it can be detected. 
It is done practically by finding a series of items in the two accounts, 
the sum of which two series is the same amount; — that is, the two 
accounts must be made to balance. 

Just what is done in reconciling can be shown by an example. 
We will suppose that the check-up has revealed the following facts: 

First, balance first of month shown by check-book stub $269.83 

Second, balance first of month shown by bank statement 267.42 

Third, outstanding checks not paid by bank up to first of month. 147.89 
Fourth, exchange charged by bank, not yet subtracted by me on 

stub 10 

Fifth, deposit sent in mail but not yet entered in books at bank. 150.00 
Sixth, mistake made by me on stub, making balance less by .20 

Let us analyze these according to the following processes: 

As Shoivn by the Stub of the Check-Book: 

The following factors are involved: 

First, my balance the first of the month. 

Second, items added on my check-book but not yet added on the bank's 
statement, such as a deposit sent through the mails and not received by the 
bank before the first of the month. 

Third, items subtracted from my check-book stub but not yet subtracted 
at the bank, such as checks issued but not yet presented to the bank for 
payment. 

As Shoion by the Bank Statement : 

First, balance first of the month as shown by bank statement. 

Second, items subtracted from my account at the bank, but not yet sub- 
tracted on my cheek-book, such as exchange charged by the bank; or the 
difference in a deposit correctly entered by the bank as $13, but by my error 
entpred in my check-book as $13.20. 

4 



38 THE BUSINESS OF THE HOUSEHOLD 



Third, items added on the bank statement but not yet added on the 
check-book, such as interest earned. 

With this formula before us, let us take the figures given and 
see if we can balance the account for the month. 

The Check-Book. 

Balance first of month as shown by stub ... $269.83 

Outstanding checks not paid by bank up to the first of month. . 147.89 



. 



$417.72 
The Bank Statement. 

Balance first of month, as shown by bank statement $267.42 

Deposit entered on stubs, but not yet entered by bank 150.00 

Exchange charged by bank, deducted from the deposit, not sub- 
tracted by me on stubs of check-book . . .10 

Mistake in adding stubs, which when corrected would make my 

balance less 20 



$417.72 

It will now be seen that these figures have been made to balance, 
but in order to correct the mistakes made, it will be necessary to 
correct the check-book stubs as follows : 

The exchange not deducted from the stubs, and the mistake in 
addition totalling 30 cents, should now be deducted from the balance 
on the last stub used. The $150 deposit will take care of itself, as 
it will appear on the next bank statement. 

Listing Outstanding Checks. — Having balanced the account, 
copy on the back of the last sheet of stubs used, the statement as 
shown above. Now list the number and amounts of all outstanding 
checks. Next month in checking up your account some of these 
checks will have been paid, in which case it will be necessary to 
check them off. If any are still outstanding they will be carried 
over from month to month in the same way until they are paid. 
These checks must by no means be checked off on their original 
stubs, but from the list as tabulated. Otherwise the checks of one 
month would become confused with those of subsequent months. 

Although these things seem perplexing to beginners, a little 
practice will overcome any difficulty in balancing the account at the 
end of the month. 

Fig. 10 is a printed form used by one bank, which is printed 
on the back of the customer's monthly statement as an aid to 
checking up the account as rendered by the bank at the end of 
the month. 

The form makes no provision for the customer's mistakes in 



CHECKING-UP A BANK ACCOUNT 



39 



RECONCILEMENT 



BALANCE FROM CHECK BOOK 


$ 






OUTSTANDING CHECKS 

NO 




































' 












































































































































TOTAL 


$ 







DEPOSITS NOT CREDITED . . $_ 
(IF ANY) 

BANK BALANCE AS 

PER STATEMENT .. $_ 



TOTAL $_ 



TO PROVE BALANCE AS SHOWN ON STATEMENT 

LIST YOUR BALANCE FROM CHECK BOOK IN SPACE PRO- 
VIDED ABOVE, SORT CHECKS NUMERICALLY 06 BY DATE. 

LIST ABOVE ALL CHECKS NOT RETURNED WITH STATE- 
MENT COMPARING THE CHECKS RETURNED WITH CHECK 
BOOK STUBS. 



CREDITED. THE TOTAL 



IF ALL DEPOSITS HAVE BEEN 
SHOULD AGREE WITH STATEMENT. 

IF ANY DEPOSITS HAVE NOT BEEN CREDITED ON 
STATEMENT ADD THESE TO BALANCE SHOWN BY STATEMENT 
AND TOTAL SHOULD AGREE WITH OTHER TOTAL 



Fig. 10. — An aid to checking up your bank account 



40 THE BUSINESS OF THE HOUSEHOLD 

addition or subtraction when entering deposits and checks upon 
the stubs of the check-book; for failure to enter either checks or 
deposits upon the stubs; for deposits mailed to the bank which 
have not yet reached it, nor for charges made by the bank, as for 
exchange. This form is helpful, but the record it calls for may need 
to be supplemented in the ways indicated in order to effect a 
reconcilement of the accounts. 

QUESTIONS. 

1. Why should one check up his bank account? 

2. How often do banks usually send the customer a statement of his 

account ? 

3. What is meant by "cancelled checks"? What is a personal check? Does 

a check made payable to ''bearer" need to be endorsed? 

4. What factors may cause a difference between one's bank balance as 

shown on the stub of one's check-book, and as shown on the bank's 
statement? 

5. What would you do if you made a deposit in the bank and did not have 

your bank book with you? 

6. Wha,t is the purpose of the bank book? 

7. What is meant by "outstanding checks"? 

8. How should they be listed after checking up the bank account? 

PROBLEMS AND DEMONSTRATIONS 

1. If possible secure a "cancelled" check, (one that has been paid by a 

bank). Explain the same and the endorsements, if any. 

2. If possible secure the monthly statement of a bank to a customer and 

explain it. 

3. Ask some member of your family having a bank account to allow you 

to try and check it up at the end of the month when the bank has sent 
in its statement, or if you have a bank account of your own, dem- 
onstrate your ability to check it up at the end of the month. 

4. Make a statement, balancing the following bank account with the cus- 

tomer's check-book: 

Customer's balance Jan. 1st $546.75 

Deposit made by customer Dec. 29th, not entered 

at bank in December 50.00 

Exchange charged by bank on a check deposited not 

subtracted on customer's stub .10 

Mistalce in addition made by customer on stubs, 
which made his account on his check-book to be 
more than that shown by the bank by a differ- 
ence of 10.00 

Outstanding checks not paid by bank up to De- 
cember 31st 45.26 

Balance as shown by the bank Jan. 1st 531.91 

REFERENCES 
Brookman, T., Family Expense Account. D. C. Heath. 
Rittentiouse, C F., Elements of Accounts. A. D. Maclachlan, Boston. 
Sheaffer, W. A., Household Accounting. The Macmillan Co. 



CHAPTER VI 
HOUSEHOLD ACCOUNTS 

An expense account frightens most housekeepers. Many newly- 
married couples at first adopt some system of keeping an account of 
expenses, but it often becomes burdensome and is soon discon- 
tinued. This is sometimes because of the systems used and because 
most people have the wrong conception of the purpose of such an 
account. If, however, they will keep a faithful record of expendi- 
tures for a year, adjusting their budget during that period, syste- 
matic habits of economy will be established that will reduce the 
household accounting to a minimum. It has even been proved 
to be a fascinating privilege. 

The importance of keeping an account of family expenditures 
cannot be overestimated, provided it is used to control expenditure. 
This real purpose of account-keeping has been entirely overlooked, 
and this is why nearly all the printed forms made for the purpose 
have proved impractical. 

Why Most Household Expense Accounts are Impractical. — 
First : Because the prime purpose seems to have been to keep a record 
of every penny and every dollar expended. 

Of course such an account is kept for the sake of accounting for 
the family income, but this should not be the principal purpose. 
The constant worry of trying to remember what one did with " that 
thirty cents " or how to account for " that dollar " throwing the 
balance short, becomes a bugbear. The time necessary to account 
for every penny and to balance accounts is worth more than the 
amount itself. 

Second: Those who have no knowledge of bookkeeping dislike 
to try to " keep books " or to " balance an account." 

Third : There has been no standard of measurement governing 
family expenditures. The needs of one family are different from 
those of almost any other. For this reason, there has been no 
standard expense book that even approximately fitted the needs 
of any one family. 

One man owns his own home, so that his problems are different 
from those that confront the renter. One man lives in a house and 

41 



42 THE BUSINESS OF THE HOUSEHOLD 

another lives in an apartment. One owns an automobile and the 
other does not. One maintains servants and the other does not. So 
the problems are different for every family and therefore the " cut- 
and-dried " conventional family expense book suits no one. 

The Real Principle That Should Govern. — The first thing 
to do is to banish from one's mind all thought of the necessity for 
keeping an account of every penny expended. The second thing 
to do is to forget about balancing accounts. Of course, one may 
take the time and energy necessary to keep a record of every penny 
and the account may be balanced, if desired, but this is not the 
real purpose of an expense account in the home. Unaccounted sums 
should simply be charged off to some such account as " Miscel- 
laneous " or " Unaccounted for." 

The real household expense account should be a Household 
Ledger and the principles underlying it should embrace the 
following : 

First. — A ledger account, that is, a separate account should be 
kept for every important division of household expenditure, as 
Kent, Clothing, Fuel, Food Supply, etc. From this account, one 
should be able to tell from week to week, or month to month, ex- 
actly how much is being spent for such a period for any particular 
item, so that a comparison may be made from time to time with 
previous weeks or months. 

As an illustration, it is very desirable to see on one page, just 
how much fuel has been purchased during any previous month 
during the year ; or, to compare last month's bill with that of the 
same month last year. In this way a check may be Icept upon such 
expenditures as show an abnormal increase. 

Second. — It is desirable to know from an expense record the 
exact date a payment was made. 

Third. — Such a record properly kept would show dates of pur- 
chase, making it easy to place a present value on any important 
object such as a piece of furniture, a picture or a rug, and thus 
estimate its value in case of loss by fire. Such a record shows the 
approximate life of an article of clothing. To the children, this 
especially might be helpful, and prove a guide in future purchasing. 
The numbers of the checks drawn to pay bills may be recorded, thus 
giving instant access to the check itself. 

Fourth. — An expense system, to be successful and practical, 
should be adaptable to the needs of every family. It should be 













HOUSEHOLD 


ACCOUNTS 






43 






TABERS HOUSEHOLD LEDGER 5 
1 2 3 


SHEET <sS^/ ^U,^^ 


P«l 


a No. 




" 'V 






4 5 6 7 


8 9 




Wk. 


Mo. 


^sr^rtAsvlcj I ■ 


<Uz*^- ^ 




cO-<£<^£-v 


1 

TOTAL 






Jan. 


w«* 


AMOUNT 


?Z2o^ 


AMOUNT 


falUJ, ^dr*. 


AMOUNT 


AMOUNT 




1 


V 


l^.. r£. 


' 1 


,// 


>6^^u 


6 


j4 


V*^~V- &<U~z^ <£c 


JL 


vv 








2 


6 ( 


I<£i*ud£ *-j£*4~& 


s* 


/ 








r 












3 


/ n 


&/&^ <r £*. 


J 


<s.6_ 




















4 




























5 






























Fob. 


Total for Mo. 


j y 


/ / 


Total for Mo 


V 


16 


Total for Mo. 


JL 


vyj- ^/.? 


A / 




1 


f 


ifcL,^ ^ fc^ 


iSo 


/ 


— ^cCt/V7 — ^-1 — ^3 


uT 


7\4~ 


2/m*„ y)6^ £. 


J~ 


•y <?! 






2 


H 


epL,^r/£. r<~zL,s& 


y.r 


a J 


/ 




y 


/ 








3 


























4 




























5 






























Men. 


Total for Mo. 


J^ 


7 P 


Total for Mo. 


-r 


7vT 


Total for Mo. 


>- 


7 £ 


yy 


^ 




1 


1 


ILrns,^ <-<£. 


y-x 




>Vy2^n!^f^ 


£ 




4/A*jts M <«**- i*f. 


/ 


• 








2 


a 


'^f^^'^r-^Lvvr'A 


' •• 


7 ' 








/ 












3 








r 




















4 




























5 






























Apr. 


Total for Mo. 


,// 


<?<y 


Total for Mo. 


6 


v/,V 


Total for Mo. 


ol 


/ *' 


^^ 


f ^ 




1 


£ 




'TO 


/ * 


A 


"7 


• © 


jU&Otf *d £Ct*~, (jL 


T 


f-9 




/ 




2 


6 


d*4L£*~&! ~*^Lf~4£. 


A* v 


rt jj" 




/ 




</ 




~ 








3 




























4 




























S 






























May 


Total for Mo. 


t/^ 


/tf 


Total for Mo. 




y 


Total for Mo. 


2__ 


+-r. 


</ir 


•/y 




1 


y 




*y j 


/ / 


^dl^c^^ 


4 


*A 


'Mttsj £)&2^ 6, 


y 


£Z3 








2 


^ 


><2**^-Z^<r- fo\ 


' 6 


/ u~ 








/ 












3 




























4 




























5 






























June 


Total for Mo. 


v/7 


•7^ v 


Total for Mo. 


A 


v« 


Total for Mo. 


... JtZ. 


^ 


- v^ 


^ 




. 


A 




/ 


^0 


— ^~d/l*>-^< st^^t 


\f 


/\T 


Ofou/' U)4s<^~7 OL 


+- 


f*a cr 








2 


C 


C&*Cdl a^-/~2.d! 


-r-J 


ftf- 








f 












3 




























4 




























5 
































Total for Mo. 


xJ* 


tfV 


Total for Mo. 


^ 


./V" 


Total for Mo. 


TOTA 


Z&j 


v/- 


°j? 




Total of previous fix month* 


3^-7 7 


j*f t 










Total for the Yoar 




/ / 


/ 



Fig. 11. — ^Household ledger sheet 



44 THE BUSINESS OF THE HOUSEHOLD 

flexible, so that it might be enlarged from time to time, to meet 
the growing needs, or decreased in size when certain types of ex- 
penditures are no longer needed. It should provide for both weekly 
and monthly entries. It should provide for at least a year's record 
to a sheet, or six months to a page, so that the entire year's record 
of any account may be found in one place. It should make pos- 
sible a separate account with each important type of expenditure. 

Such a record may be made by anyone in a properly ruled book, 
when opposite pages may be used, but loose leaf sheets already 
printed for the purpose are now on the market. They can be kept 
in an inexpensive binder, arranged in alphabetical order. Fig. 11 
is a sample page of such a sheet, filled out, showing the expenditures 
for " Food Supply " during a six-month period ; the reverse of the 
sheet would give the record for the next six months, thus placing 
a whole year's record of each important heading on a single sheet. 

It will be noticed that the entire page of the sample sheet is 
given over to " Food Supply" but that this subject is divided into 
three subheads, columns 3, 5 and 7, and that these subjects consist 
of Groceries and Ice, Meat and Fish, and Dairy Products. It is not 
necessary to so divide the subject of " Food Supply " unless desired. 
If meat and fish are bought of a combined market, they can go under 
the one head of " Groceries." Butter can also be so charged unless 
one wishes to make the distinction mentioned. In fact, any classifi- 
cation may be used. 

In the same way, every page is arranged for the division of the 
main subject into three subtopics, or accounts. 

Each page is so ruled that each month has five spaces, or one 
for each week, so that if necessary, weekly payments may be 
recorded. The entries in the ledger may therefore be made at the 
end of each week, or may be made during the month as checks 
are drawn. 

The average family will not use more than fifteen to eighteen 
pages, or accounts. For those who have a more extended need than 
this, on another page of this chapter will be found a list of headings 
that may be used, together with appropriate subheads. 

Following the pages used for expenditure, a page should be 
devoted to a summary for each month of the year. This sum- 
mary, for instance, should show the total expenditure for each 
month, for each subject. Any blank sheet can be used for the pur- 
pose, but printed forms are available. As an illustration, the 



HOUSEHOLD ACCOUNTS 



45 



summary sheet totals, copied from the previous pages, might show 
the following (Fig. 12) : 




ITEM 


Jan. 


Feb. 


Mch. 


Apr. 


May 


Jun. 


Jul. 


Aug. 


Sept. 


Oct. 


Nov. 


Dee. 


Total 


iSfeL>£-£Slsi4 ^ 


/3T 


;sr 


rs. 


7* 


fr 


?* 


7* 


7r 


^ 


& 


7*. 


7* 


?<?*. 


2 




























SyZffcu^rrV^ 


p<r 


jj- 


2S. 


Is. ■ 


IS. • 


is: 


oZt: 


&r 


U 


«>,c 


ar. 


?*- 


3 a a 










































































































































TOTAL 


'da. 


/0 0. 


/a a. 


/0 0. 


Ma. 


/00. 


/00. 


/oa. 


/O0. 


/oef. 


/4)0. 


/a* 


/Zoo. 



RESUME 
Total Income for the Year. from All Sources -- 

Total Expenditures for the Year %. /& Q.Q. : 

Balance on Hand Firet of Year $ 



... $../&■** 



Fig. 12. — Summary of total for Fig. 11 

The figures given in the yearly summary are for illustrative 
purposes only, in order to show how the summary should be filled in. 
They do not in any sense represent a standard budget. 



46 THE BUSINESS OF THE HOUSEHOLD 

The total income for the year should exceed the total expendi- 
tures, and in that case in the " Resume " at the foot of the page, 
a " Balance on Hand First of the Year " would be shown. 

The monthly total expense, it will be noted, sometimes exceeds 
the monthly income; how to care for such excess expenditures is 
explained under Budget Checks, page 28. 

It should be remembered that the principal purpose of such an 
account is to know what it is costing for any particular division of 
household necessities. " Am I paying too much for rent in pro- 
portion to the amount being spent for clothing? Is the food 
supply running too high as compared with previous months? Are 
the gas and electric and fuel bills normal ? How do taxes compare 
this year with last year's assessment? Am I extravagant in my 
laundry? Do I pay too much for carfares and so lack exercise 
and increase doctor's bills ? " Such are the questions that are vital 
in the economics of the home and the proper kind of an expense 
record will help you to answer such questions. 

SUGGESTIVE HEADINGS AND SUBHEADINGS 
FOR A FAMILY HOUSEHOLD LEDGER 

Automobile 
Subheads.- — Original Investment and Keplacements ; Eepairs 
and Extras; Gas and Oil; Garage; Chauffeur; License and Insur- 
ance; Depreciation. 

Beneficiaries 
Subheads. — If relatives are being supported the record should 
be kept under this heading, and the names may be used for sub- 
heads ; or, Allowance ; Clothing and Board may be used as subheads. 

Books and Periodicals 
Subheads. — Books, Periodicals. 

Civic Activities: Church and Charity 
Subheads. — Pew; Pledges; Missionary; Sunday School; Socie- 
ties; Collection; Hospital; Settlement; Special Funds; Charity. 

Civic Activities: Clubs, Lodges, Etc. 
Subheads. — A page may be kept for each organization if de- 
sired. Dues, etc.; Fees; Accounts. 






HOUSEHOLD ACCOUNTS 47 

Clothing 

This account may bo kept in two ways, either with individuals 
or according to the character of the clothing. 

Subheads. — Father ; Mother ; Children ; or John ; Mary ; Jane , 
etc. ; or, Outerwear ; Underwear ; Hats and Shoes, etc. 

Education 

This account may also be kept with individuals, giving a page 
to each one with appropriate subheads, or each subhead may take 
the name of the individual. 

Subheads. — John; Charles; Mary; or, Books and Supplies; 
Transportation; Lunches and Spreads; Extras; Tuition; Fees; 
Room; Board. 

Fuel 
Subheads. — Coal and Wood ; Gas ; Janitor and Labor. ( See also 
Illumination.) 

Food Supply 
Subheads. — Groceries and Ice; Meat and Fish; Dairy Prod- 
ucts; that is, by dealers 5 accounts; or the record may be kept by 
kinds of foods — Meat Foods, Milk and Cream, Cereals, Fruits and 
Vegetables, Fats, Sweets, Food Accessories. 

Furniture and Upkeep 
Subheads. — Furniture; Carpets and Rugs; Linens; China and 
Glass ; Kitchenware ; Art and Pictures ; Repairs ; Miscellaneous. 

Garden and Lawn 
Subheads. — Trees and Shrubs; Seeds and Plants; Dirt and 
Fertilizers; Tools and Supplies; Labor. 

Gifts 
Subheads. — Birthdays ; Holidays ; Weddings ; Anniversaries and 
Deaths; or Father; Mother; Children; Friends. 

House Repairs 
Subheads. — Payments on House (see Partial Payments or In- 
vestments) ; Carpenter and Mason; Plumber; Decorator and 
Painter; Material and Supplies; Miscellaneous. 



48 THE BUSINESS OF THE HOUSEHOLD 

Individuals 
Accounts in the name of individual members of the family 
may be kept as necessary. 

Subheads. — Name; Name; Name. 

Investments and Savings 
Subheads. — Bank; Loans; Bonds; Mortgages; Old Age Fund; 
Eeal Estate; Miscellaneous. 

Insurance : Life 
Subheads. — Life; Health; Accident. 

Insurance: Fire 
Subheads. — Building; Personal Property; Miscellaneous. 

Illumination, Etc. 
As gas for cooking is not usually separated from gas for light- 
ing, both have been included under " Illumination." 

Subheads. — Gas; Electricity; Oil; Fixtures; Bulbs; Miscel- 
laneous. 

Laundry and Cleaning 
Subheads. — Steam Laundry; Washer Woman and Laundry 
Supplies; Cleaning and Pressing. 

Medical 
Subheads. — Doctors or Practitioners; Nurses; Dentist; Oculist; 
Drugs and Supplies; Hospital. 

Music 

Lessons may be included under Education or under this heading. 
Subheads. — Piano, Phonograph; Music Polls; Records; Sheet 
Music; Miscellaneous. 

Old Age Fund 
This may be kept separate, or under Investments and Savings. 

Personal 

This may include personal indulgence and personal service. 
Subheads. — Hairdresser ; Manicure ; Barber ; Tobacco ; Liquor ; 
Flowers; Candy; Theaters; Entertainments; Miscellaneous. 

Partial Payments 
A page may be given to this subject which embraces the payment 
of debts, a record of payments on a house, a lot or a bond, etc. 
Subheads. — As suggested. 






HOUSEHOLD ACCOUNTS 49 

Postage and Stationery 
Subheads. — Postage ; Stationery. 

Kent 
Subheads.— 'None necessary unless rent is being paid on more 
than one place. 

Eecreation 

Some of the subheads under " Personal " may be included here 
instead, if desired. In addition the following are suggested : 

'Subheads. — Concerts and Dances Trips; Vacation; Miscel- 
laneous. 

Savings 
Subheads. — As necessary. 

Service 
Subheads. — Maids ; Nursemaid ; Governess ; Cook ; Butler ; 
Chauffeur; Valet; Gardener; Tutor; Janitor; Dressmaker (or more 
usually under Clothing) ; Extra. 

Transportation 
Subheads. — Commutation; Street Cars; Boats; Eailroad ; Taxi ; 
Livery. 

Taxes 
Subheads. — Eeal Estate; Personal Property; Federal Income; 
State Income; Water Tax; Wheel Tax; Dog Tax; Licenses. 

Unaccounted for and Miscellaneous 
All miscellaneous expenses and money unaccounted for may be 
entered under this heading. 

It is, of course, understood that no one family would have use 
for all of the headings and subheads suggested. Certain subheads 
are grouped under more than one general heading, permitting 
personal choice. This list is only suggestive, but it will give one an 
idea of the classification of household expenditures. It is flexible, 
so one can adapt it to one's needs. Other methods will suggest 
themselves to any one who uses the system. 

Receipts. — All the sources from which money is received would 
constitute a list of " Money Keceived." They would be of such 
a nature as the following : 
4 



50 THE BUSINESS OF THE HOUSEHOLD 

Salary or Wages ; Eents ; Interest from Bank ; Interest on Mort- 
gages; Dividends from Stocks; Interest on Bonds; Payments on 
Loans ; Payments on Property Purchased ; Income Bequests ; Gifts ; 
Miscellaneous; Sales. 

A little practice will soon make one familiar with the system 
suggested. If mistakes are made, it merely means that perhaps one 
sheet is spoiled and not an entire book. It is understood that each 
family writes in its own headings to suit its own needs. Many 
questions will arise from time to time but in a short while the 
user will be able to simplify his accounting and reduce the headings 
to a minimum. 

Any family who will use such a system, faithfully for one entire 
year will not dispense with it, for it will meet many needs. 

Using the System. — As suggested in a previous chapter, all 
household bills should be paid monthly, and by check ; not by cash, 
and if possible not even weekly. As soon as all bills are in, before 
drawing checks in payment of them, after 1 they are listed in alpha- 
betical order, enter the amounts in the Household Ledger under 
the headings selected. In case of bills, as those from Department 
Stores, which may include clothing, groceries, furniture and other 
articles on a single bill, it will of course be necessary to pick out 
the different items from the hills and foot them up, entering the total 
for each type of expenditure under the proper head. 

Handling Cash Accounts. — From the foregoing, it will be seen 
that the principle upon which household accounts should be based, 
is that of a system which will show at the end of the month exactly 
how much has been expended for each important item in the budget. 
Such a system naturally will depend upon the weekly or monthly 
bills from the various tradesmen. These amounts are to be copied 
at the end of the week or month, under the proper headings. 
This, however, does not provide for the cash expenditure, which 
obtains from day to day. 

A good way to take care of cash expenditures is to secure a 
blank book and rule the pages vertically into columns, placing at 
the top of each column the heading to be used. Following is a 
ruled page given as a suggestion: 

If it is desired, the amount of money in cash drawn each week 
or month, may be entered in the first column. If expenditures are 
made from day to day, the amounts should be jotted down, prefer- 
ably in pencil, under the proper heading A daily total of cash spent 



HOUSEHOLD ACCOUNTS 



51 



RECORD OF CASH EXPENDITURES FOR THE MONTH OF 

JANUARY 





T3 
h 
O 

o 

a> 

S-i 
02 

o 


a 


02 



o 


o3 

o3 
O 




02 
O) 

a 
^1 


02 
fl 

a 

02 

a 


01 

<v 

o 

t-t 

o 


o> 
02" 

O 


0) 




*o3 
O 

H 


1 
























2 
























3 








i 

! 














4 
























5 








i 










— 




6 


1 


















7 






















8 
























9 












i 










10 
























11 
























12 
























13 
























14 












i 










15 












1 










16 












i 
1 










17 
























18 
























19 
























20 
























21 


















! 




22 
























23 
























24 

























52 



THE BUSINESS OF THE HOUSEHOLD 



RECORD OF CASH EXPENDITURES FOR THE MONTH OF 
JANUARY— Continued 





T3 

u 

o 
o 

2 

02 

u 


p, 

03 

"8 

O 


o 

M 
o3 

o3 

o 


o 


GQ 
0) 

o 

PI 

Hi 


GQ 

PI 

0) 

a 

GQ 

a 


GQ 
0> 

o 

f-l 

O 


o 

•4-5 

GQ 

3 


Miscellane- 
ous 




Total daily 
cash spent 


25 
























26 
























27 
























28 
























29 
























30 
























31 
























Total 





















Each total should be transferred to its proper page and column in the Household 
Ledger at the end of the month and entered as " Cash Expenditure." 

may be entered in the last column if desired At the end of the 
month the total for each item should be made at the foot of the 
column and this total should be transferred to the proper heading 
in the permanent Household Ledger. Not many headings would 
be necessary, as it is supposed that most expenditures will be paid 
by check at the end of the month. Such records as cash paid for 
fruit and vegetables from peddlers, carfare, lunches, amusements, 
church collections, and incidentals would probably be the ones most 
used. They can be distributed at the end of the month in the 
Household Ledger where they belong. 

It should be understood that this Cash Book is to be used as a 
temporary expedient, and not as a permanent record. It should 
not be necessary to enter details, or specify the nature of expendi- 
tures recorded in the Cash Book ; amounts expended, classified under 
the proper headings, are all that one ordinarily should be concerned 
with in the use of the Cash Book. At times, however, it may be 
very desirable to study the quantities and kinds of goods purchased, 
as in the case of food, or clothing. 






HOUSEHOLD ACCOUNTS 53 

It is easy to make a cash record with a column for such entries, 
or other methods may be employed as suggested below. 

There are numerous other systems of keeping household accounts 
but most of them are based upon regular bookkeeping methods and 
are more confusing to the average woman who has no training in 
bookkeeping, than is the system given in this chapter. With a 
simple form for entering daily cash expenditures without details, 
such as suggested, combined with the household ledger in which 
weekly or monthly entries may be made, together with the final 
monthly and yearly summary, nothing further is required in the 
way of household accounts. 

Food Accounts. — Some have suggested that detailed records 
be kept of food expenditures, at least for a period, in order to check 
up the amounts of different kinds of food used. As an illustration, 
a certain amount of meat-like food or protein is required daily. 
Protein is the most expensive form of food and it represents a class 
of food with which many families are very wasteful. If the protein 
foods can be recorded daily and apart from other kinds of food 
material, a check may be kept upon undue expenditures for it — so 
for other kinds of food. For instance, experts are urging that in 
any family food budget as much should be spent for milk as for 
meat. 

Any such system must be kept in detail and requires more 
work, perhaps, than the average housewife can or will give to it 
permanently. Such a system does not take the place of household 
accounting and the Household Ledger. It does, however, have a 
very decided value in the study of the food problem, and for those 
who will use it, even temporarily, it serves a valuable purpose. This 
form of record may also be used for other household expenditures 
apart from food, but the main feature is the opportunity presented 
of classifying food expenditures according to definite types of food 
material, such as the following : 

Meat and meat-like foods — important for protein: Meat, fish, 
eggs, nuts, peas, beans, cheese, lentils. 

Milk : Important for protein and for so-called " vitamines " or 
body-regulating substances, and for mineral salts. 

Cereal or grain foods — representing the carbohydrates: Meal, 
rice, flour, breads, cereals, macaroni, crackers. 

Representing the fats: Oil, lard, bacon, butter, butterine, salt 
pork, etc. 



54 



THE BUSINESS OF THE HOUSEHOLD 



Fruits, vegetables : Important for the mineral salts and for the 
so-called " vitamines." 

Eepresenting the sweets and also carbohydrates: Candy, sugar, 
honey, molasses, sirup, etc. 

Eepresenting stimulants and condiments: Tea, salts, coffee, 
spices. 

As the basis for a study of food this system is excellent, and it 
should be considered more carefully in connection with the chapter 
on food in the budget. 

The Household Ledger form given on Page 43 can be readily 
adapted to a classified food record, as shown in Fig. 13. 

Keeping Personal Expenses. — There are many unmarried 
men, as well as wage-earning women, whose home is a boarding 





TABERS HOUSEHOLD LCOSER SHEET 




















Pood supply i Proteins) 

1 2 3*1 1 * <* 1 * 3 


4 5 




D.| 


LTAfit STl^ TMflk *""""" 


NontklF 


... 


CELSOBO 


1-jSvol 


MorlMv 


TiAOTimo«-Hnt i 


Nonlhlr 


FIUI 






1 ,1US 


TOTU 






BILLS 


10UI 






(ILLS 


I0T»L 


TOIIL 




































>- 

K 
































D 
2 
































< 








































I 








I 















Pig. 13. — Classified food record 

place. Even though such persons live with parents or other rela- 
tives, they are not directly interested in the expenses of the home 
itself. They are, however, interested in their own personal expenses 
from the point of view of a wise use of money, and of increasing 
their savings. 

There are several expense records on the market which provide 
for a monthly statement of personal expenses with a monthly 
summary. One of these records, intended for men, is given in Fig. 
15. Each page represents a day, and the books contain thirty-one 
pages for the month and daily expenditures; and appropriate 
monthly summary pages are given. 

A Cash Record. — A reproduction of a page from a record 
published by the American Home Economic Association 1 is shown. 
It shows the suggested food divisions together with the other family 
expenditures, making a complete daily cash account, Figs. 15-16. 

1 Thrift by Household Accounting, Journal of Home Economics, Balti- 
more, Md., 25 cents. 



HOUSEHOLD ACCOUNTS 



55 



1flfl 








t TRANSPORTATION 


TaUls 


ORGANIZATIONS 8 


Total 


Railr'ad 


St. Car 


Boat 


Cab 




Church 


Charity 


Club 


Ass'aa 
































2 ROOM BOARD 




FINANCE 




From 


To 


Am! 


From 


To 


Amt 




Bank 


Insur. 


Loans 


Invest.. 




























Break. 


Lunch 


Dinner 


Extra 




Taxes 


Rents 


DtsPd. 


Interest 
























Guest 




POSTAGE, ETC, 10 




a ROOM ACCESSORIES 




Stamps 


Stat'ry 


Stenog. 


Phone 




Furn ish 


Linen 


Light 


Heat 
























Teleg. 


'Express 


Dray 


Tips 


















CLOTHING 81 





4 LAUNDRY 






Amt. 




Aiat. 


Laun'ry 


Press. 


Clean. 


Mend. 














Coats 




Shoes 












Collars 




Vests 










Haberd'ry 




Underw'ar 






6 PHYSICAL 




Neckwear 




Jewelry 






Doctor 


Dentist 


Nurse 


Occul'st 














Overcoat 




Hose 






Manic'e 


Massag. 


Barber 


Bath 




Sweater 




Hats 
















Suit 




Miscel. 






Toilet A. Phys. Cul. 














6 RECREATION 














Theatre 


Movies 


Enter. 


Games 
























MISCELLANEOUS 12 




Picnic 


Trip 


Spreads 


Miscel 






Amt. 




Ant. 














Candy, etc 




Losses 










Drugs 




Tobacco 






7 EDUCATION 




Flowers 




Liquor 






Tuition 


Subject 


Lecture 


Suppli's 




Gifts 




Vacations 


























Books 


Magaz. 


Fees 


Miscl. 

























































Fig. 14. — Summary of personal expenses 



56 



THE BUSINESS OF THE HOUSEHOLD 



CASH RECORD 


House 


Food 


Rent, or house payments, 
taxes, house repairs 


Meat, fish, eggs, milk, cheese, 

nuts, lentils, dried beans 

and peas 


Fruit and vegetables 






















Total 






Total 






Total 




Fuel, light, laundry and 
cleaning supplies, ice 


Flour, meal, rice, macaroni, 

breakfast food cereals, 

bread, crackers 


Butter, butterine, oil, lard, 
bacon, salt pork, etc. 






















Total 






Total 






Total 




House furnishings 


Sugar, sirup, honey, molas- 
ses, candy, etc. 


Tea, coffee, salt, spices, etc. 






















Total 






Total 






Total 







Pig. 15. — Suggested food division together with other family expenditures 
— to be read with Fig. 16, opposite. From "Thrift by Household Account- 
ing." 



HOUSEHOLD ACCOUNTS 



57 



DURING WEEK BEGINNING. 



Personal (clothing, car fare, lunch, health, recreation, education, insurance, etc.) 



Name_ 



Name_ 



Total 



Total 



Total 



Name_ 



Name, 



Name_ 



Total 



Total 



Total 



SUMMARY 



CASH FOR USE 


CASH USED 


CASH LEFT OVER 


On hand at begin- 
ning of week 


Total weekly ex- 
penses 


Total cash for 
use 


Received from 


Paid on back 
debts 


Total cash used 




Saved 














Total 


Total 


Cash on hand at 
end of week 









Fio. 16. — Family personal expenses and summary — to be read with Fig". 15, 
opposite. In addition, a page of weekly summaries brings together all 
these totals at the end of each week 



58 THE BUSINESS OF THE HOUSEHOLD 

QUESTIONS 

1. Why are most household expense accounts impractical? 

2. What are the principles that should underly an expense account for the 

home ? 

3. What are the advantages of keeping such an account? 

4. What is meant by a "Household Ledger ?" 

5. In keeping an expense account, what information should each entry 

show? 

6. How would you handle daily cash paid out? 

7. What is the purpose of classifying food expenditures according to food 

values ? 

8. In making such a classification what would be the principal food head- 

ings to be used. 

9. Could this system of classification be followed in the household ledger 

system ? 
10. Should one keep a small personal expense record of individual 
expenditures ? 

PROBLEMS AND DEMONSTRATIONS 

1. Make a list of the various types of expenditures in your own home, 

such as Rent, Food, Clothing, etc. 

2. As far as practical, divide these expenditures into proper headings 

and subdivide each main heading into three or more subheads. 

3. Make a list of headings for "Money Received'' according to the sources 

of income for your family. 

4. Ascertain what system of household accounting, if any, is used in your 

family. 

5. Make a statement showing the amount of your family gas bill for each 

month during the past year, if possible. 

6. Compare the family expenditure for coal for two winter seasons, if the 

figures are available. 

7. If possible procure an expense book of the type explained in the previous 

chapter, or make one yourself by dividing the pages of a small 
ledger. Open in this book a separate account, with each item of 
expense used by your family, placing the proper headings and sub- 
headings for each account at the top of the proper pages. 

8. If possible, secure the consent of your parents to keep in this book a 

monthly record of all family expenses, beginning with the first of 
the coming month. 

9. Make out the headings and subjects for a Yearly Summary Page. 

10. If you handle money during a week or month plan a record for this, 
keep it conscientiously and note the effect upon you. 

REFERENCES 

Crandell and Crandell, A Manual of Household Accounts. Whitcomb 
& Barrows. (A three-year record of the complete financial status of 
the family, with income and total expense summaries and balance 
sheets. The Cash Record is kept separately and its totals are trans- 
ferred at the end of the month to this book.) 

Haskins, C. W., How to Keep Household Accounts. Harper and 
Brothers. 



HOUSEHOLD ACCOUNTS 59 

Leeds, J., The Household Budget. J. Leeds, Philadelphia. 

Otis and Otis, Household Accounts Simplified. M. L. Otis, Madison, 
Wis. 

Rittenhouse, C. F., Elements of Accounting. A. D. Maclachlan, Boston. 
(A text-book for college home economics classes.) 

Scoville, H. T., Farm Accounting. D. Appleton Co. 

Sheaffer, W. A., Household Accounting. The Macmillan Company. 

Thrift by Household Accounting. American Home Economics Asso- 
ciation, Baltimore. 

Woolson, G. B., Woolson's Economy Expense Book. G. B. Woolson, 
New York. 

Farmers' Bulletin, 782, The Use of a Diary for Farm Accounts, U. S. 
Dept. of Agriculture, Washington, D. C. 



CHAPTEE VII 

THE APPORTIONMENT OF INCOME THROUGH THE 
FAMILY BUDGET 

A budget system, or the planning in advance for expenditures in 
proportion to income, is a mystery to most households. Expendi- 
tures are not planned — they just happen. There are weeks and 
months of lean days followed by similar periods of fat days. Christ- 
mas and holiday expenditures, sickness, accidents and misfortune 
lessen the days of plenty and add to the general worry of the 
wage-earner. 

Expenditure. — Writers upon household economics have divided 
family expenditures into " Necessities " and those that contribute 
to the « Higher Life." 

There can be no fixed classification, however, any more than 
there is a fixed standard of living for everyone. The luxuries of a 
past generation seem to be the necessities of a succeeding generation, 
and it is the experience of America that standards of living are 
constantly rising. 

One's economic position is a determining factor in the matter 
of clothing as well as in fixing one's social status. The clothing 
of the factory worker is different from that of the office-clerk. The 
nurse, the policeman, the soldier, the trainman and all those whose 
occupation calls for a uniform, find an entirely different problem 
confronting them in the matter of attire from the ordinary person 
in civil life. 

By the term " Necessities " one is not merely to consider that 
which makes existence possible, but that which makes life both 
tolerable and comfortable. There are certain fixed items of expen- 
diture that are common to all persons. These consist of such things 
as rent or shelter, food, clothing, and heat and light which often 
are classified under fuel as a part of operation or upkeep. Necessi- 
ties though these items are, they represent expenditures in which 
extravagance may exist. 

If a family rents a house or an apartment that exceeds the 
60 



INCOME AND THE FAMILY BUDGET 61 

proportion of income that should be expended for that purpose, such 
an excess of rent becomes a luxury that should not be afforded; 
unless there can be a corresponding decrease in some other item of 
expenditure, in which case the excess rent may be considered as a 
contribution to the " Higher life/ 5 in that it provides a better 
environment, or a more tolerable living condition than that hitherto 
enjoyed. 

The division of income into " Necessities " and expenditures that 
contribute to the " Higher Life " is a good one, because it teaches 
us so to order our expenditures that the income may not be spent 
entirely for mere bread and meat. The finances of the family should 
be managed so as to leave a sufficient margin for those things which 
directly contribute to culture, education, enjoyment, the develop- 
ment of the mind and the growth of the soul. 

To the gifted musician, music is as much a necessity as carpets 
and rugs to the ordinary housewife. The more important things 
of life are not " meat and drink " nor clothing ; but they are the 
things of the spirit. Emphasis, therefore, must be placed upon the 
material things which we style " necessities," because careful man- 
agement of such expenditures makes it possible for us to have more 
of all that contributes to the Higher Life, or " The Joy of Living." 

Necessities. — The writer would classify the " Necessities " as 
follows : 

NECESSITIES 

(a) Shelter: 

1. Rent, or, (2). 

2. Interest, Taxes, Upkeep, and Insurance. 

3. Transportation to work, since rents vary with location. 

4. Necessary Furniture and Furnishings. 

5. Fuel. 

6. Illumination. 

7. Operating expenses, that is, replacement of utensils, supplies of 

soap, etc. 

1. Meat and Meat Substitutes. 

2. Fruits and Vegetables 
Sometimes 3. Flour and Cereals. 

• classified as-i 4. Fats. 

5. Sweets. 

6. Ice. 

7. Miscellaneous. 



(b) Food: 

1. Groceries. 

2. Meat and Fish. 

3. Dairy Products. 

4. Ice. 



62 THE BUSINESS OF THE HOUSEHOLD 

(c) Clothmg: 

1. Suits, dresses, etc. 

2. Underclothing. 

3. Over-clothing, wraps, cloaks, sweaters, capes, etc. 

4. Hats, shoes and gloves. 

5. Accessories, as collars, ties, etc. 

6. Laundry, cleaning, pressing and repairing. 

It must be remembered that the term " Necessities " is not here 
used in its restricted sense. A number of items in the above list may 
not be real necessities to every person ; but if these items are included 
in the budget, they should be classified as " Necessities." 

Higher Life. — Under this heading should be included all that 
contributes to culture, education and recreation; to wider social 
and civic activities ; and to safeguarding physical health and finan- 
cial security. It may seem strange to classify such expenditures 
as those for the doctor, the nurse and the dentist under Higher 
Life, but it is customary to do so. Under this division may be 
included the following : 

HIGHER LIFE 
(a) Insurance: 

1. Life. 

2. Health. 

3. Accident. 
(h) Saving: 

1. Investments. 

2. Competency for old age. 

(c) Physical: 

1. Doctor. 

2. Dentist. 

3. Oculist. 

4. Nurse. 

5. Medicine. 

6. Professional services, manicure, hair dresser, etc. 

7. Recreation. 

( d ) Domestic Activities : 

1. Service in the home. 

2. Entertaining. 

3. Telephone. 

( e ) Civic Activities : 

1. Political organizations. 

2. Clubs, Sororities and Fraternities. 

3. Lodges, civic and business organizations. 

(f) Philanthropic Activities : 

1. Charities. 

2. Beneficiaries. (Care of relatives and others.) 

( g ) Religious Activities : 

1. Church and Church organizations. 

2. Missionary Work. 

3. Y. M. C. A., Y. W. C. A., and similar organizations. 



INCOME AND THE FAMILY BUDGET 63 

(h) Culture: 

1. Books and Periodicals. 

2. Music, piano players, phonographs, etc. 

3. Art. 

4. Drama. 

5. Travel. 

( i ) Education : 

1. Schools. (Public and Private). 

2. Special instruction. 

3. Physical education. 
(;) Luxuries: 

1. Amusements. 

2. Personal indulgences. 

3. Automobiles, motor boats, etc. 

4. Extras and excess expenditures. (All expenditures for rent, 

above a reasonable amount and for furniture and furnishings 
and other goods not actual necessities.) 
(k) Gifts. 

Many of these items have been mentioned simply to outline me 
proper division of expenditures, not because every one, or even 
many, will use all of this classification. 

Percentage Apportionment of Income. — Some economists 
have proposed more or less definite apportionment of the income on 
a percentage basis. For instance, they say that the rent should not 
exceed 25 per cent, of the monthly income. One such classification, 
according to the percentage basis, the origin of which is unknown, is 
the following : 

Per cent. 

Food 30 

Clothing 13 

Rent of house 25 

Housekeeping expenses 12 

Education 6 

Luxuries 4 

All other expenses 10 

Total 100 

Another estimate according to the two classifications of " Ne- 
cessities " and " Higher Life " already mentioned, is the following 

Necessities Per cent. 

Rent 20 

Food 25 

Clothing 20 

Operating Expenses 15 

Total, 80 

Higher Life 20 

Total 100 



64 THE BUSINESS OF THE HOUSEHOLD 

Ellen H. Eicharcls in 1899 gave the following ideal budget for 
four adults or for two adults and two or three children as follows: 

Per cent. 

Food 25 

Rent 20 

Clothing 15 

Operating Expenses 15 

Higher Life 25 

Sheaffer gives his budgets for families of four or five made up 
of two adults and three children under sixteen years of age as 
follows : 

Operating Higher 

Food Rent expenses Clothing life 

Income Per cent. Per cent. Per cent. Per cent. Per cent. 

$1500 to $4000 25 20 15 20 20 

$1000 to $1500 30 20 15 20 15 

$800 to $1000 35 20 15 15 15 

$500 to $800 S5 15 15 15 10 

Under $500 60 15 10 10 5 

It will be seen that these estimates differ. The point to be 
brought out in this connection is that all such arbitrary percentage 
estimates are often absurdly misunderstood. They are subject to 
qualification and limitation, and can be used only in the most general 
way as a guide to the proper division of the family income. One 
may readily see that, if 25 per cent, of an income of $300 a month 
was apportioned for rent for two people, the amount allowed for that 
item of expenditure would, under ordinary conditions, be more than 
sufficient. 

Again, "Kent" when applied to apartments usually includes 
water tax, and often heat, continuous hot-water and janitor service; 
while in the rental of a house such items are usually paid for 
separately by the tenant. 

Engel's Laws. — The result of investigations by Ernst Engel 
in Europe (1857) in regard to workingmen's expenditures led him 
to believe that as the workingman's income increases the percentage 
of the income spent for food decreases; the percentages spent for 
rent, for clothing, for fuel and light remain practically unchanged ; 
while the percentage for higher life, including education, health, 
comforts, etc., increases as the income increases. 

Engel's principles have recently been restated for American 
conditions by Streightoff as follows : 



INCOME AND THE FAMILY BUDGET 65 

"As the income increases (from $500 to $1200) : — 
"1. The proportionate expenditure for food 

(a) decreases for the country at large from 50 per cent, to 37 per 

cent., but 

(b) in New York City, it amounts to almost 45 per cent, of the 
total outlay until an income of $1000 is attained. 

"2. There is a strong tendency for the percentage of expenditure for 

clothing to increase (from 12 per cent, to 15. per cent.). 
"3. Relative expenditures for housing 

(a) remain about constant for the country at large, (at about 18 
per cent.), but 
(b) decrease rapidly from 30 per cent., or more, to 16 per cent, in 
New York City. 
"4. Proportionate expenditures for fuel and light decrease (from about 

per cent, to 4 per cent. ) . 
"5 Expenditure for culture wants increases absolutely and relatively 1 " 
(from 1G per cent, to 25 per cent, for the country at large; from 11 
per cent, to 19 per cent, for New York City). 

Factors to be Considered in Apportioning the Income. — 

There can be no standard, fixed basis for the division of the family 
income applicable to all families, since families vary in the condi- 
tions that determine expenditure. 

For the above reason, one should not depend entirely upon pub- 
lished estimates in percentages. In determining the proper appor- 
tionment for the two divisions already mentioned, " Necessities " 
and u Higher Life " the following factors, among others, must be 
taken into consideration : 

(a) Number in Family: 1. Number of adults. 2. Number of 
children. 3. Number of employees. 

(b) Physical Condition: 1. Health. 2. Sickness. 3. Special 
physical conditions. 

(c) Shelter: 1. House. 2. Apartment — heated. 3. Apartment 
— unheated. 

(d) Environment : 1. In city. 2. In suburbs of city. 3. In small 
city. 4. In town or village. 5. In University town. 6. On farm. 

(e) Transportation: 1. Necessary to go to school. 2. Necessary 
to go to work. 3. Necessary to go to church. 4. Necessary to go to 
market. 

The physical condition of some member of the family might 
make life in an apartment impossible. Children might make a home 
in a suburb, even at a greater expense, the best possible kind of an 
investment. Adults require more food than small children ; laboring 

'The Standard of Living, F. G. Streightoff. 
5 



66 THE BUSINESS OF THE HOUSEHOLD 

men need more than sedentary workers. So in studying this prob- 
lem, each family is a unit that cannot be compared with another 
family unless the conditions are the same. 

The Budget System. — This consists of estimating one's ex- 
penditures and then apportioning the income during a definite 
portion of time, such as a week, a month or a year, so that there 
will be no lean periods, and so that the income may be distributed 
evenly over the specific period in a way that will allow a balance 
for the " higher things " of life, as well as a sufficiency for all 
necessities. 

This cannot be done by taking the weekly or monthly income 
as a standard of measurement, although of course, in the end, ex- 
penditures cannot be more than the income, but the standard of 
measurement must be the average weekly or monthly expenditure for 
the entire year. Household bills vary from month to month. If 
some months they amount to fifty dollars, other months will show 
a record of one hundred dollars' outgo. Fall and spring months 
call for expenditures for clothing to meet changing seasons; ex- 
penditures that are not apt to come at other times of the year. The 
haphazard method finds the approach of these months with no funds 
on hand to meet these and other seasonal demands. 

Before a budget can be made as it should be, it is necessary 
to have some kind of a record of expenditures upon which to base 
the budget. This proves the value of the proper kind of household 
accounts. One must know about what it has been costing for cloth- 
ing, for food, shelter and other items of household expense covering 
a period of at least a month under normal conditions. With these 
figures as a basis, the income is then apportioned to cover all neces- 
sary needs for the next month. Perhaps too much is being spent 
upon the table and not enough upon the clothing; perhaps too much 
is being allowed for rent. If so, the new budget will be able to 
correct such mistakes. A past month's account can be made the 
basis for the following month's budget, and so on until a fairly 
definite standard of expenditures has been determined upon. 

Apportionments. — Some have said that the various items of 
household expense bear a definite percentage relationship, one to 
the other, and that that relationship may be fixed as a standard 
for these particular expenditures. The danger of depending upon 
such percentage estimates has already been referred to; it is due 
to the fact that definite percentages are allowed for items of basic 



INCOME AND THE FAMILY BUDGET 67 

expenditures, such as rent, food and clothing, regardless of the con- 
ditions that determine costs, such as the number in family, and city 
versus country life. In a given city, for instance, there is a mini- 
mum rental at which either habitable houses or apartments in 
respectable neighborhoods may be secured, and this must be a fixed 
expenditure in the budget. 

Under given conditions, there is a minimum expenditure abso- 
lutely necessary to sustain life ; likewise, there is a minimum expen- 
diture necessary to maintain respectability and self-respect. The 
same is as true for the farm family as it is for the city family. 

Budgets Based Upon Minimum Necessities. — An attempt 
has been made to give a few typical budgets, that as nearly as pos- 
sible approximate conditions as they really exist in a large city, and 
which include the varying factors involved. Similar budgets may 
be made for farm conditions. These budgets are not based upon 
percentages, but upon income in relation to actual conditions, and 
the apportionments are expressed in terms of even dollars. The 
factors considered are the following: 

First.— Income: $1200, $2400, $3600. 

Second. — Family: 2, 3, 4, 5 persons. 

Third. — Housing : In a heated or unheated apartment. 

Fourth. — Pre-war economic condition. 

These four budgets make allowances for incomes of $1200, 
$2400 and $3600 with various sized families of two adults, and 
families with one, two and three children, living in heated 
apartments. 

Relative Costs. — The total expense of course increases with the 
number in the family, but the items do not increase by simple multi- 
plication. The costs for children are relatively less than for the 
adult members, and for a second and third child less than for the 
first child. 

Food for three does not cost half as much again as for two 
people; for there is more waste per capita and less opportunity for 
economy in buying and in utilizing with two than with a larger 
number of persons. 

Clothing is made over or utilized more completely in the family 
with children than in the adult family. 

Housing accommodation and accordingly rent will have to be 
increased with increase of family, so for three in a family this may 
cost more than for two; a second child will probably increase it 



68 THE BUSINESS OF THE HOUSEHOLD 

since boys and girls are to have separate rooms; but a third child 
need not increase housing cost. A family of five adults would 
not have an equal possibility of " doubling up/' 

MONTHLY BUDGETS FOR HEATED APARTMENTS IN CITIES 

(Estimated for 1916) 

Budget No. 1. — Income: $1200 per year or $100 per month 

Necessities 2 persons 3 persons 4 persons 5 persons 

Food $ 24 $ 30 $ 36 $ 42 

Rent 25 30 30 30 

Clothes 12 15 18 18 

Operating expense 6 6 6 6 

Total necessities 67 81 90 96 

Higher life including savings. 33 19 10 4 

Total $100 $100 $100 $100 

Budget No. 2. — Income : $2400 per year or $200 per month 

Necessities 2 persons 3 persons 4 persons 5 persons 

Food $ 35 $ 40 $ 50 $ 60 

Rent 35 . 40 45 45 

Clothes 18 20 25 30 

Operating expense 20 22 25 25 

Total necessities '. 108 122 145 160 

Higher life including savings — 92 78 55 40 

Total $200 $200 $200 $200 

Budget No. 3. — Income: $3600 per year or $300 per month 

Necessities . 2 persons 3 persons 4 persons 5 persons 

Food $40 $45 % 55 $65 

Rent 40 45 55 55 

Clothes 24 30 36 42 

Operating expense 25 25 30 30 

Total necessities 129 145 176 192 

Higher life including savings 171 155 124 108 

Total $300 $300 $300 $300 

Operating expense, which includes gas, electricity, telephone and 
housekeeping expenses, such, as wages, soap, supplies, utensils and 
the like, will not vary much with size of family; although it will 
vary with size of income. In these heated apartment budgets, oper- 
ating expense does not of course have to include heat, water tax, 
or the cost of heating water. In none of the budgets is a full-time 
employed worker provided. Only part-time help, as occasion makes 
necessary, is allowed. 

The " Higher Life " item in the budget is to include expenses for 



INCOME AND THE FAMILY BUDGET 69 

necessities such as care of health, including a reasonable amount 
for recreation, expenses for education, for newspapers, magazines 
and the like, and also whatever personal expenditures may have to be 
provided for. In this item, too, is included savings. 

It is obvious that there are elastic expenditures which will grow 
rapidly with increase of income, provided expenditures for "neces- 
sities" such as food, clothing, shelter and service are held down 
toward minimum necessities. One fundamental point in all the 
budgets suggested above is that it is possible to organize one's 
expenditures so that the necessities are allowed a sufficiency, and as 
income grows, are kept toward a reasonable minimum, so that there 
is an increasing margin for cultural life and for savings. 

Relation of Cost to Increasing Income. — In examining these 
budgets many may think that if an income increases from $1200 to 
$3600 a year, more increase should be allowed than has been given 
for the necessities of life. The mistake many families make when 
their income increases is to raise the standard of living too rapidly 
in respect to necessities. More food than is needed is provided ; a 
greater variety and more expensive kinds of foods are indulged in. 
More elaborate living quarters are rented and very much more may 
be spent for clothing. This is entirely wrong in theory. As shown, 
EngePs principles allow a decreasing per cent, for food as income 
grows, while cultural wants claim an increasing per cent, of the 
family budget. 

The minimum living requirements should be maintained until 
more of the higher things of life have been provided for, and until 
a goodly start is made on a savings account or a competency for old 
age. After a reasonable reserve has been built up for emergencies 
and for things of the higher life, more may then be apportioned for 
so-called "necessities." If forty dollars, with good management, 
will provide plenty of nourishing and satisfying food when living 
upon a twelve hundred dollar a year income, why double this ex- 
penditure the moment the income has been doubled ? We reed no 
more physically than we did before. Some increased food expense 
at the twenty-four hundred dollar level may be permissible, but 
surely the large increase allowed in budget No. 2 is a maximum. 
One must guard lest the additional sum spent upon the table be 
merely for the satisfaction of the palate. 

The real difficulty comes in making the budget for the smaller 
incomes. The budgets given are for the minimum requisites at the 



70 THE BUSINESS OF THE HOUSEHOLD 

1916 high prices. Heated quarters (1922) cannot be had for less 
than $60.00 a month in the large cities, and in new buildings the 
rental is still higher. Rents that fall below $40 and $50 a month 
usually mean unheated apartments, and the expense of heating 
falling upon the tenant would add very materially to the cost of 
rent. Four rooms heated may, of course, be available in some 
cities and in small towns for such a figure. 

MONTHLY BUDGETS FOR HOUSES HEATED BY TENANTS 

Budget No. 4- — Income: $1200 per year or $100 per month 

Necessities 2 persons 3 persons 4 persons 5 persons 

Food $24 $30 $36 $42 

Rent 20 20 25 25 

Clothes 12 15 18 18 

Operating expense 10 10 10 10 

Total necessities 66 75 89 95 

Higher life including savings 34 25 11 5 

Total $100 $100 $100 $100 

Budget No. 5. — Income : $2400 per year or $200 per month 

Necessities 2 persons 3 persons 4 persons 5 persons 

Food $35 $40 $50 $60 

Rent 25 30 35 35 

Clothes 18 20 25 30 

Operating expense 26 28 32 32 

Total necessities . 104 118 142 157 

Higher life including savings 96 82 58 43 

Total $200 $200 $200 $200 

Budget No. 6. — Income : $3600 per year or $300 per month 

Necessities 2 persons 3 persons 4 persons 5 persons 

Food $35 $45 $55 $65 

Rent 30 35 40 45 

Clothes 24 30 36 42 

Operating expense 32 32 37 37 

Total necessities 121 142 168 89 

Higher life including savings.... 179 158 132 111 

Total $300 $300 $300 $300 

A comparison of these budgets for families in unheated houses 
with those in heated apartments shows the first difference of course 
in the rent item, which is considerably less for a house than for an 
apartment with corresponding accommodations. As the housing 
costs less, there are corresponding increases in Operating Expense 









INCOME AND THE FAMILY BUDGET 71 

for the fuel for heating the house, for the water tax, and for the 
cost of heating water. Another offset for the cheaper rent of the 
house is the cost of caring for grounds and sidewalks. On the other 
hand, the house, provided there be a garden attached, may reduce 
food cost by $50 to $75 a year. It has not seemed best to show 
all these possibilities in the budgets for houses but to base the budgets 
for families in houses upon the following assumptions: 

The cost for food and for clothing will be the same for these 
families as for those living in heated apartments. (There may be 
differences — garden, social demands, entertaining, etc.) 

The rent of the unheated house will be considerably less than 
for the heated apartment occupied by the same family. 

There will be a corresponding increase in Operating Expense 
because of extra fuel cost, and water tax especially; but possibly 4 
also because of hired service, although members of the family may 
make the latter adjustment without extra expense. The increase in 
the operating expenses in houses over the operating expenses in 
apartments has been assumed to be not quite equal to the saving in 
rent on the house as compared with the apartment. With budgets 
emphasizing thrift and savings this may very well be true; many 
families moving from apartments to houses show, however, an in- 
creased cost for living in a house due often to the fact that such 
a family would take a house much larger than the apartment which 
they were willing to put up with. Other expenses also sometimes 
come with the house to increase living costs. (See also page 110.) 

There will be, therefore, a slightly larger margin for the Higher 
Life item, including savings, in the budgets for families in houses. 

Farm Home Budgets. — The farm home budget will include 
the same items that have been considered. Thus there will be Eent 
or its equivalent, and clothing ; there will be Food ; but the larger 
part of this will be produced, not bought outright. Some farm fami- 
lies account for the cost of food bought, and reckon that produced 
as the difference between the real cost of production and what it 
would have cost if purchased. The cost of production becomes then 
an item in the farm operation, not that of the home, while the better 
living which probably results is not reduced to a money basis. 

There will be Operating Expenses of heat, light and service, etc., 
although the fuel and water may be a local supply and the service 
cost slight. 

While it may be more difficult to frame a standard budget for 



72 THE BUSINESS OF THE HOUSEHOLD 

the farm home than for these others, the principles of the budget 
system are equally fundamental and its advantages should be 
studied. 

Applying the Budget System. — It is assumed that a Bank 
Account has been opened, that all family bills are now being paid 
by check, once a month ; that a practical system of household account- 
ing has been adopted ; and that an estimate of the family needs for 
six months at least, if not an entire year, has been made and that 
the average per month has been struck for the various expenditures 
to be made during the coming year. 

If all this has been done, all that is necessary is to see that the 
monthly expenditure for each item does not exceed the amount 
allowed. If forty dollars has been decided upon for the table, the 
housekeeper should see that no more than that sum is spent. A 
memorandum may be kept on a sheet of paper tacked on the kitchen 
wall. Slips issued by merchants with every purchase can easily 
be entered on such a sheet. All that is necessary is to enter the total 
of each slip in pencil. In this way one can always tell how the 
bills are running, and if they are going to run too high, some little 
luxury can be given up to insure the average. 

Carrying Over Budget Items. — This subject is touched upon 
in the chapter on iC Saving," but it should be emphasized here in 
applying the budget system. If the expenditures for any item in 
the budget do not amount to that which is allowed, after drawing 
all checks to pay current bills, list on a piece of paper the amounts 
left to the credit of each account. As an illustration suppose the 
first column following represents the amounts allowed in the budget, 
the second the amounts of the bills for the month, and the third 
the balance left to the credit of that account : 

Balance 
Monthly Amount of on Hand for 

Budget Month's Bills These Items 

Groceries, etc $30.00 $25.00 $ 5.00 

Clothing 25.00 15.00 10.00 

Insurance 15.00 0.00 15.00 

$30.00 
Here we have thirty dollars not expended at the end of the 
month. Next month there may be $20 left over, or perhaps $50, 
and so every month perhaps there may be some amount unexpended. 
For instance, we must lay aside something every month for insur- 
ance and for clothing to meet heavy seasonal demands. There are 



INCOME AND THE FAMILY BUDGET 73 

two ways to care for this situation. The first is to draw one check 
for the total amount left to the credit of all funds. Do not sign the 
check, but deduct it from your balance as shown on the stub, and 
then hold the check. A better way, however, is to take such expendi- 
tures as savings, insurance, clothing, fuel, etc., and draw a separate 
check for each one of these items, each month, for the balance 
left to the credit of each account, and then hold the unsigned checks. 

When the time comes to pay insurance premiums, one might 
have six unsigned checks of $10 each. Add on the stub of the 
check-book the amount of each of these checks to your balance and 
destroy the checks. List on the stub the numbers of the checks, and 
also mark " cancelled " opposite these checks in the list of " out- 
standing checks " entered on the stub the last time you checked up 
your bank account. These checks will not again be listed in check- 
ing up the bank account the first of the month. Now draw a check 
in the regular way for the full amount of your insurance premium 
payable to the Insurance Company. If, after paying the insurance 
premium, there is still a balance to the credit of this fund, draw 
a check for the amount, and hold it as usual. Savings checks can 
be held in the same way. If desired, all such checks can be listed 
on a memorandum sheet in the expense record. 

This is very easily accomplished, and although difficult to de- 
scribe is in practice very simple indeed. If the budget and house- 
hold ledger system is persistently kept, it will soon be found indis- 
pensable, and the drawing of unsigned checks for budget sums in 
reserve will be found one helpful feature of it. 

Keeping Apportionment Checks. — In following the budget or 
apportionment system on a bank account basis, it will soon be 
found that a number of checks will always be on hand awaiting 
future expenditures. As an illustration, money is accumulating 
in the Fuel Fund during the summer months, and if $15 a month 
is being allowed for this apportionment, there will be a check issued 
for this amount, and held for every month when no expenditures 
are being made for this account. It is possible to have on hand a 
number of checks for Fuel; others for Clothing; others for Sav- 
ings; for Insurance, etc., etc. These checks of course are being 
held unsigned, although deducted from the check-book balance. 

The best way to care for these apportionment checks is to file 
them alphabetically in a small envelope file or case procurable at 
any stationery store. All the clothing checks would be under 



74 THE BUSINESS OF THE HOUSEHOLD 

" C," the Fuel cheeks under " F" etc. As needed, one or more or all 
of them may be removed from the file when they are to be used. 

Keeping a Record of Apportionment Checks. — It might be 
well to rule a page in a blank book on which to keep a record of 
apportionment checks being held. Such a page might be ruled as 
follows : 

APPORTIONMENT CHECKS RESERVED DURING YEAR 19— 
Item Jan. Feb.March.Apr. May. June. July. Aug. Sept. Oct. Nov. Dec. 
Amt. Amt. Amt. Amt. Amt. Amt. Amt. Amt. Amt. Amt.Amt.Amt. 
$15 $15 $15 $15 



Fuel 

Clothing ..$10 
Medical . . 5 
Insurance. 10 
Interest . . 
Taxes .... 5 
Savings . . 20 



$10 $10 .. 10 10 .. 10 $10 

5 5 5 5 5 5 $5 $5 

10 10 .. 10 10 10 10 10 10 10 

15 15 15 15 .. 15 15 15 15 15 

5 5.. 5555555 

20 20 .. 20 20 20 20 20 20 20 



Such a record is only intended to serve from month to month so 
that one can see at a glance just what apportionment checks are on 
hand. As they are used for some purpose, they are marked off 
on the record. Months in which payments occur would probably 
show no budget check issued for the item involved. For instance, 
interest falls due in January and July, so that it is probable that 
the accumulated funds together with the apportionment for Janu- 
ary and July would be spent immediately to pay the matured inter- 
est, so budget checks for those months for this item would not be 
issued. 

In conclusion. — Owing to the rise and fall of prices since 1916 
it has been thought best to use the prices and percentages preva- 
lent for that year as "being more nearly normal than those that 
will obtain for sometime to come. 

The unusual housing shortage throughout the country has 
caused an abnormal increase in rents, so that the amounts allowed 
for this item in the budgets on Pages 68 and 70 would prove en- 
tirely inadaquate in 1922. To meet this increase other items in the 
budget must be cut very substantially if a lower standard of living 
is not to be adopted or other compensations made. 

QUESTIONS 

1. What is meant by the term "Higher Life"? Name the items of Family 
Expenditures usually classified under this heading; under Necessi- 
ties. What items under "Higher Life" might really be classified as 
necessities ? 



INCOME AND THE FAMILY BUDGET 75 

2. What might be considered "Luxuries" for an average family? 

3. What does shelter include? Under what heading would you classify 

"Ice"? Transportation"? Why? 

4. Why is a percentage apportionment of income misleading? What factors 

should be considered in making an apportionment of the family 
income? In what way might these factors change an apportionment? 

5. What percentage of income is generally allowed for "Rent", for "Food", 

for "Clothing", for Higher Life as a whole, for Necessities as a 
whole? What are Engel's laws? 

6. What is meant by a "budget" ? Upon what must a budget be based ? In 

a budget what items of expenditure are more or less fixed, and not 
subject to much deviation? 

7. What difference must be considered in making budgets for apartment 

dwellers and for those living in houses? 

8. If the fuel for the winter cost $180.00, how would you apportion this 

sum in the budget? How would you handle the money apportioned 
during the year for fuel? 

9. What are the principal advantages of the budget system? 

PROBLEMS AND DEMONSTRATIONS 

1. Take a list of expenditures in your own family, and classify these types 

of expenditures, under the two headings, "Necessities" and "Higher 
Life." Subdivide the headings under "Necessities" into the three sub- 
divisions and the headings under "Higher Life" into the ten headings 
given in this chapter, providing expenditures in your family embrace 
all of these items. Make a tabulation showing the percentage spent 
for "Necessities" and for "Higher Life" and for their subdivisions. 
These figures are for your personal use and need not be submitted 
to the class or the teacher unless desired. 

2. If the necessary figures are available, find out how much per person, per 

month it is costing your family for food. 

3. Make a budget for a family of two having a salary of $1200 per year, 

based upon a heated apartment. 

4. On $900.00 a year. 

5. On $1800.00 a year for a family of five. 

6. On $2400.00 a year for five adults. 

7. On $3600.00 a year for five adults. 

8. Make similar budgets based upon a house. 

9. Make a budget to suit the conditions, needs and income of your own 

family. 

REFERENCES 

Beuere, Increasing Home Efficiency. Macmillan Co. 

Fraser, A. S., The Fraser Budget for Personal or Family Expenditures. 

Tapley Specialty Co., New York. 
Leeds, J., The Household Budget. J. Leeds, Philadelphia. 
Richards, E. H., Cost of Living. J. Wiley & Sons. 
Sheaffer, W. A., Household Accounting. Macmillan Co. 
Streightoff, F. H., Standard of Living. Houghton, Mifflin Co. 
Veblin, T., The Theory of the Leisure Class. Macmillan Co, 



CHAPTER VIII 
FINANCING THE FAMILY 

Every family should as soon as possible form well-decided 
policies regarding the business of the home. In fact, as outlined 
in previous chapters, the attitude of the family toward all the great 
problems of life should be formed as early as possible. The funda- 
mental questions of religion and man's relation to God and to the 
agencies that represent the world's religious thought need a clear 
analysis in the mind of every parent or prospective parent early in 
matrimonial life, if not before. The relation of the family to society 
an 1 its duty to one's fellow-men, and to the nation at large, demand 
a definite statement in the minds of every one. Religion, patriotism 
and duty need to be more than merely assumed. In the thought 
and life of every individual these terms and what they stand for 
need to be defined by one's attitude and expressed in one's life. 

In a somewhat similar manner, although the needs of the family 
are assumed and although the hope and faith exists that the future 
will care for all such needs, more than this is demanded of every 
family. 

In the organization of a business firm or corporation well- 
defined methods are adopted for financing the prospective concern. 
The law must be complied with; articles of partnership or incor- 
poration drawn up ; officers elected and capital raised. 

The Family a Co-operative Institution. — The family should 
be assumed to be a co-operative organization to which every member 
contributes something. Just what that something is for each mem- 
ber of the family, adult or child, should be fully understood. 
Every member can contribute something to the common good. The 
younger children may contribute their share of the family work and 
the adult children who are earning should contribute their 
proportionate share of the expense of the family. 

Adult Children. — Theoretically, whatever board, room and 
washing may cost a young man or woman, that sum at least 
should be contributed to the upkeep of the family, if the working 
son or daughter lives at home. It is true that most parents who are 
able, wish to spare their children from any expense possible, if they 



FINANCING THE FAMILY 77 

live at home; but despite this fact both parents and children should 
recognize their economic duty in such matters. There can be no 
comparison between life at home and life in a boarding-house even 
at the same actual cost. 

Children who are self-sustaining and living at home should not 
receive the first lessons of a parasite within the family circle. The 
young man or woman in such a position, who spends his or her entire 
income upon his or her own needs and pleasures without contribut- 
ing to his or her own support, or without assisting in the work 
of the home, is as much of a parasite as one who professionally 
deserves that appellation. 

As children become self-supporting while still at home, they 
should be taken into the confidence of the parents and the mysteries 
of the family budget should at least be in part explained to them. 
They can be easily shown the advantages of living at home as com- 
pared with life in a boarding-house. They can figure for themselves 
what it would cost to pay for a room and for board and washing 
outside of the home. The expense of maintaining such a home as 
they have been accustomed to should be shown, and then, if they 
choose to remain at home with the parents and enjoy the larger 
comforts that come from home life, they should be willing to 
contribute their share toward the maintenance of that life. 

Children's Share of Family Expenses. — Such a share need not 
be arrived at by dividing the total family expense by the number in 
the family, as that would not be fair ; but a minimum charge should 
be arrived at by considering the cost of three factors in the budget : 
rent, food and laundry. 

As explained in the chapter on Service, the rent of an extra 
room for a maid in the cities means not less than $15 per month, 
and so, if a son or daughter requires an extra room, this charge 
might be made. The food supply of the family may be reckoned 
as $20 per month per person. Laundry, if hired done, for a family 
of four will cost about $16 per month, or $4 per person. These 
figures show the amount that might reasonably be asked from a 
self-supporting son or daughter. 

Room per month $15.00 

Board per month 20.00 

Laundry per month 4.00 

Extras per month 1.00 

Total S40.00 

This would average about $10 per week, much less than room, board and 
laundry could be obtained for outside of the home, 



78 THE BUSINESS OF THE HOUSEHOLD 

This is a minimum charge and there are many other small items 
of expense that might justly be included that would make the 
amount for " extras " much higher. Of course, it is assumed 
that the son or daughter is earning enough to pay for their own 
clothes, for car-fare, lunches and incidental expenses, over and 
above the items mentioned. It is difficult to reduce family relations 
to figures in dollars and cents, and no effort should be made to do 
so, but young people should become economically independent as soon 
as they become self-sustaining, for right-minded young people will 
not continue financially dependent upon parents a day longer 
than necessary. 

Children should strive to reduce the weight of the load carried 
by parents, and endeavor to make the family what it should be, 
a purely co-operative institution, recognizing that the more each is 
able to contribute the better will be the home surroundings. When 
two or three self-sustaining young people pool their interests with 
those of father and mother a much more desirable home may be 
maintained than would be possible were the burden left entirely 
to the parents, or were the children to choose to leave home for 
life in a boarding house. 

The Budget the First Step in Financing the Home. — This 
subject has been discussed in previous chapters, but it is mentioned 
here simply because there can be no sound plan for financing the 
family until some kind of a budget system has been adopted, and 
until a proper system of household accounting has been devised. 

Wages and Salaries. — All expenses connected with the upkeep 
of the home and with the support of the family should be defrayed 
from the wage or salary earned by the individual members of the 
family. There are a few fortunate families who have their income 
augmented by gifts; by money inherited; by interest acquired on 
capital invested; by rents on property owned; by royalties on 
patents and copyrights and from other sources outside of wages 
and salaries. Income from such sources should not be expended 
for actual living expenses. Money secured in this way should be 
conserved for savings or for cultural needs, or for such items as 
might be classified under u Higher Life." At the best, such addi- 
tions to the income are liable to fluctuate or stop altogether, and 
it is generally understood that a man should earn through his own 
labors in the form of a wage or salary, sufficient to support himself 
and family. 



FINANCING THE FAMILY 79 

Indebtedness. — As stated in the section on Credit, if misfortune 
causes indebtedness, the family should not rely upon the local 
tradesmen to bear this burden, but credit should be established 
with the local bank and a sufficient sum should be borrowed from 
the bank to pay all existing debts. 

If the seeming necessities of the family equal the income, ex- 
penditures must be cut down or one's earning capacity must be 
increased. If this cannot be done, then the debt should be amor- 
tized; 1 that is, one should determine the limit of reduction the 
family expenditures will allow, and the sum saved by such reduc- 
tion should be continued for a sufficient number of months to pay 
the interest and principal of the debt at the bank. 

Banks usually loan money for thirty, sixty, ninety and sometimes 
one hundred and twenty days. If payment is made upon a note 
when due, the bank is usually willing to renew the balance of the 
loan for another similar period. If then the budget is modified 
so as to allow for the reduction and extinguishment of the debt, it 
need not remain as a burden. 

Purchasing Real Estate and Building. — Vacant property 
usually can be purchased by paying a certain sum in cash and giv- 
ing the seller a mortgage on the property for the balance. A thou- 
sand-dollar lot, for instance, might be purchased for $250 cash and 
a mortgage for $750. The purchaser, of course, would have interest 
and taxes to pay and other expenses connected with the title. 
The mortgage note $750, together with interest and taxes, may be 
paid on the amortization plan, as explained in the chapter on Insti- 
tutions for Saving and Investment (p. 336). 

One should be careful about investing in vacant property as 
usually such property is not the source of any income. If, however, 
one can purchase a lot for cash, or clear it of incumbrance, then 
one generally can manage to borrow sufficient money to build, and 
as soon as a building is erected, the owner has an income from 
which interest and other expenses may be paid. 

If one wished to purchase a house and lot, together worth $7500, 
or to purchase the lot and build the house, it might be done on 
an initial payment of $2000 or even less. From four thousand to 
forty-five hundred dollars might be borrowed on the property, and 
a second mortgage for the balance be given to the seller or con- 
tractor as follows: 

*See page 336 



80 THE BUSINESS OF THE HOUSEHOLD 

Cash $2000.00 

1st Mortgage 4000.00 

2nd Mortgage 1500.00 

Total $7500.00 

Such a house might bring $75 a month rent or $900 a year, and 
this amount should be applied on the second mortgage. If the 
owner lives in the house, he should pay that sum as rent and apply 
it in the same way. Out of his salary, sufficient also should be saved 
to pay the taxes and interest on the first mortgage until such a 
time as the second mortgage has been paid off. When that has been 
accomplished the $75 allowed as rent should apply on the first 
mortgage, until it has been reduced to a more reasonable amount, 
or until the interest on the remaining indebtedness, plus taxes and 
upkeep, make a reasonable rent. 

If the indebtedness was reduced to $3000 the interest at 5% 
per cent, would amount to $165 a year and added to the following 
expenses would make a very reasonable rent: 

Interest $3,000 at 5% per cent, per year . $165.00 

Taxes, estimated at 1% per cent, of the full value. . 125.00 
Insurance ($10) and upkeep ($100) 110.00 

Total expense per year $400.00 

Note. — Interest rates have risen from 53^ to 6 or 7% on real estate 
loans in 1921-2. 

This would give the owner a home that could be rented at 
$60 to $75 per month for only $33 rent. 

Amortization.— Suppose it was desirable to pay off this $3000 
mortgage with interest on the amortization plan, how much would 
have to be saved or allowed for this purpose each year ? 

By turning to the chapter on Institutions for Savings and In- 
vestment (p. 337) will be found a table showing what amount would 
have to be allowed annually for $1000 at 5% per cent, if payable 
in twenty annual installments. 

This table shows that yearly payments of $83.68 would have 
to be allowed for each thousand dollars, or three times that amount 
for $3000, which would be $251.04 per year for nineteen years and 
$83.62 for the twentieth year for each thousand dollars, or $250.86 
for the $3000 on the twentieth year. The total paid in in the 
twenty years would be three times $1673.54, which would be 
$5020.62. The difference between this amount and the principal 
of $3000 shows that $2020.62 would be paid for interest. 

If, however, interest is paid annually at 5% per cent, it would 



FINANCING THE FAMILY 81 

amount to $165 per year and for twenty years would be $3300, or 
$1279.38 more than under the amortization plan. 

If the debt is to be extinguished in ten years, of course the 
annual payments would be just twice the amount mentioned. 

Taking Stock. — Mention elsewhere has been made of the neces- 
sity of taking stock several times a year of the family wardrobe. 
In a larger sense, there should be an annual stock taking of the 
financial condition including the needs of the family. This may be 
divided into a record of present and prospective needs and a record 
of one's possessions at the end of the year. 

Inventory of Real Estate and Personal Property. — There 
should be an annual or more frequent inspection of the house and 
premises, taking note of present and prospective repairs that may 
be necessary ; one should at the same time make an inventory of all 
personal property worth listing, as referred to in another chapter. 
Eeal estate should also be listed, together with money on hand 
or in the bank, investments, and money due the family, so that one 
may know the first of the year the approximate wealth of the family. 
Comparisons should be made with the situation in other years. 

The foregoing are general suggestions, but they may be worked 
out to suit the needs of each individual family. 

Credit in Household Finance 

There is nothing that a business man prizes so highly as credit. 
There is nothing that many a wage-earner and many a housewife 
u fights so shy of " as credit. 

A man in business does not hesitate to use his credit to the 
limit, if it is necessary, but he is very careful not to abuse it. He 
guards his credit as he does his reputation. If it is necessary to 
borrow money he does not shrink from doing so, and it is not con- 
sidered any reflection upon his ability, or of his standing as an 
individual, or as an officer of a company. The householder, how- 
ever, is often very much alarmed at the bare thought of a mortgage 
upon the homestead, or a note at the bank, or perhaps at monthly 
bills from tradesmen. The idea often seems to be that cash must 
be paid for every individual article as purchased. Some openly 
boast that "we pay cash for everything." One may pay cash for 
many years and yet establish no credit, even with the firms that 
have been the constant recipient of one's cash. One of the dis- 
advantages of this system is illustrated by the following true story : 
6 



82 THE BUSINESS OF THE HOUSEHOLD 

For a number of years, a young man with a wife and two children, had 
enjoyed a responsible position with a very fair salary. The coming of the 
children brought added expenses, and with the rise in the price of com- 
modities that took place about thi3 time, he soon found that he could not 
save as much as formerly. He was one of those who pride themselves upon 
the fact that they ''always pay cash" and that he "owed no- man a penny." 

Suddenly the most unexpected series of misfortunes befell the family. 
Their resources were swept away, long continued sickness and death com- 
pelled them to fall back upon their little capital which soon dwindled. To 
meet new demands, meant the sacrifice of this life-long principle of "paying 
cash." It meant that a balance in household accounts would have to await 
the coming of several pay-days. Going to the tradesmen with whom he had 
dealt for a number of years, men who had received his hard earned cash 
regularly from day to day, he explained the circumstances and asked for 
sixty or ninety days' time on his household bills. 

One consulted with another. Here was a young man who had always 
paid cash they argued, and now, after running up a bill with them for the 
first time, he was asking for a sixty or ninety day extension of the account. 
"He must be gambling or speculating" they feared, and with some such idea 
in their minds, they refused the credit he had asked for, suggesting that he 
might go to the local bank and borrow the necessary money. 

In the years that he had lived in this community, he never had thought 
of the bank as an institution in any way related to himself. It was there- 
fore with considerable timidity that he approached one of the bankers and 
asked for a loan of a hundred dollars. 

"I — I would like to — to borrow a — a hundred dollars," he said. 

"May I ask your name, sir?" kindly inquired the cashier. 

"And you mean to say you have lived here seven years?" continued the 
cashier. "Strange I have never met you. Do business with one of the other 
banks?" he asked. 

"No," was all the prospective borrower could reply. 

"If you will have some responsible party, say one of the merchants with 
whom you do business, endorse your note, we will be glad to accommodate 
you," said the cashier, as he turned to give his attention to more pressing 
affairs. 

And now for the first time in his life, the young man began to see the 
value of credit. What mattered it that for seven years he had never failed 
to pay cash for all of his purchases ? Cash was gone and the only thing that 
could save him was "credit," something he did not possess. To his dismay, 
he realized that there was not one business man to whom he could go toj ask 
this favor. 

Fortunately, the temporary relief came from an unexpected source, but 
he had learned his lesson. In the course of time he paid his debts and 
once more had a couple of hundred dollars in the savings bank; but now he 
transferred that amount from the savings to the checking department of 
the bank. Going to the cashier who had refused to loan him the hundred 
dollars, he again introduced himself, and said that he would like to open a 
small checking account. 

Opening up the checking account by depositing his two hundred dollars, 
he now made it a rule to deposit the full amount of his salary check to his 
credit in this bank, paying all his bills by check. 

He picked out a new set of tradesmen, and informed them that he was a 
department manager in Smith & Smith's, the big steel people; that he 
would like to open an account and that he paid his bills by check between 



FINANCING THE FAMILY 83 

the first and tenth of each month. "You may refer to the First National 
Bank of this city, if you wish any references," he said. 

Not one of these tradesmen refused his account. Having opened these 
accounts, he went to the department stores in the city and repeated his 
experiment, giving the various suburban merchants as additional references. 
No difficulty was experienced in securing a monthly credit with each one of 
these big stores to the extent of a couple of hundred dollars. 

In the course of a few months, what with his savings and his regular 
deposits, his daily balance easily averaged four or five hundred dollars for 
the month. He also made it a point, never to enter the bank without at- 
tracting the attention of the cashier. He endeavored to make the ac- 
quaintance of the assistant cashier and the various tellers, so that they all 
knew him by name. 

"Yes, that's one of Smith & Smith's rising young managers," he one day 
heard the paying teller say to the assistant cashier. "It is as good as a 
raise in salary," he thought as he left the bank. In the meantime, the 
officers of the bank had noticed his checks coming in day after day, and 
sometimes a deposit by mail. He was now a regular customer of the bank 
and as such, he reasoned he was entitled to a little credit, so going to the 
cashier who once had turned him down, he asked to borrow two hundred 
dollars, for sixty days. The request was granted at once, and the proceeds of 
the loan were deposited to his credit. 

Six weeks of the two months had passed, when the young man again ap- 
peared before the cashier, but this time to pay the note before it was due. 
In the course of time, the experiment was repeated, and it was not long 
after that his credit was good for a thousand dollars, and without security 
or endorsement. For this splendid credit he merely paid a few dollars for 
interest. The stores that had refused him credit now clamored for his 
trade, but he had no need for them. 

The Household Credit System. — As previously stated, this is 
a true story, and it should be taken to heart by every young man 
and by every head of a household whether husband or wife. The 
most valuable financial aid anyone can secure in starting out in life, 
is not money, but credit! 

Every young couple should establish at once such credit with 
the local banks and tradesmen, and if a family has been going 
along on the cash basis and patting themselves on the back for it, 
let them at once " right-about face " before the storm comes, and 
seek shelter under the protecting wings of " Credit." A bank 
account, however small, should be started at once. Husband and 
wife should both make themselves known at the bank, and they 
should be seen going in and out from time to time. Their checks 
and deposits, although small, will not escape the observation of the 
banker, and should the question of a loan come up, they will not be 
strangers to the banker. Monthly charge accounts should be opened 
with local tradesmen and also with the big stores in the near-by city. 
All such bills should be paid by check, usually the first of each 



84 THE BUSINESS OF THE HOUSEHOLD 

month, and not with cash, daily, weekly or at any other time. 
Occasionally weekly settlements may be made to advantage with 
grocers or markets. 

Disadvantages of the Cash with Purchase Plan. — Aside from 
the lesson taught by the foregoing story, paying cash has many 
disadvantages. 

Loss. — Pocket-books are lost or stolen by sneak thieves. Secret 
hiding places seldom escape the scrutiny of the experienced burglar. 
Mistakes are easily made in making change. It is very easy to 
drop money when extracting it from a pocket-book. Loss is by no 
means a small consideration in the question of keeping money in 
the house or about the person. 

Accounting. — If one wishes to keep a record of expenditures 
and to account for money received and disbursed, it is rather an 
annoying and a difficult thing to account for every day's purchases 
and balance a cash account. The time and energy taken for such 
purposes is often more valuable than a missing balance of a dollar. 

Keeping Change on Hand. — It is difficult always to have suffi- 
cient small change to meet the requirements of pedlers and for 
emergencies in which bills are not easily converted into change. 

Paying Cash Does Not Always Make One Thrifty. — It is often 
claimed that one will not buy so much if one has to pay cash for it. 
This is a wrong principle to start with. If the article is needed it 
should be purchased regardless of how it is paid for, with cash or 
by check. If it is not needed, one should have sufficient strength 
of character to resist its purchase. On the other hand, if it is a 
temptation that should be resisted, it will be easier to resist if a 
check must be signed and filled out in order to pay for it. Per- 
haps, by the time the check is ready, resistance to temptation has 
been fortified and the battle won. 

The woman who can be trusted with cash certainly should be 
trusted with credit. If she will abuse one she will abuse the other. 

Advantages of the Credit System. — Charge accounts do away 
with the necessity of keeping cash on hand, or of always trying to 
keep sufficient small coins with which to make change. They sim- 
plify household accounting and bookkeeping. They offer no oppor- 
tunity for loss. A receipted bill proves payment. 

It is human nature to pay greater attention to those enjoying 
more than the usual amount of this world's goods, and the posses- 
sion of a charge account to many clerks is an evidence of the social 



FINANCING THE FAMILY 85 

status of the customer. Absurd as such things really are, they 
cannot be gainsaid. Charge account customers do receive more 
attention from tradesmen and their employees, and from the help 
in large department stores, than customers who pay cash. In the 
krger stores, clerks have no way of knowing whether the charge 
customer represents a million dollars or thirty dollars a week. The 
only safe way to prevent a chance of offending the millionaire 
customer is to show the same degree of courtesy to all charge cus- 
tomers, it being assumed that few well-to-do customers pay cash. 
In the smaller stores it is often assumed that the cash customers 
cannot secure credit and therefore their means are limited. In 
other words, they must be living a hand-to-mouth existence. 

It has been said that with a charge account more will be pur- 
chased than if cash is paid. This is untenable. At first, there 
may be a slight tendency in this direction, but as one becomes accus- 
tomed to the charge method a successful effort will be made to keep 
the charge bills for the current month within a certain figure. The 
tendency to overpurchase on a charge account is more evident with 
groceries than with other items of household expense. This point 
has already been touched upon, but it is again emphasized because 
experience is all that will teach some people. The advantages in 
favor of this system are so evident that no one who has tried both 
systems would think of going back to the old u cash with order " 
plan. 

Department Store Credit. — Department store credit is of 
course the same kind of credit afforded by any charge account, 
but there are many advantages offered by the big store that cannot 
be secured from the small merchants. With the butcher, the baker 
and the grocer, only certain kinds of merchandise are sold, but the 
customer of the large department store has for his or her selection 
a choice of the world's markets. Such charge accounts offer the 
advantage of having all purchases, representing perhaps a dozen 
different lines, listed on one bill at the end of the month. Instead 
of a dozen bills from a dozen tradesmen, these purchases are listed 
on one bill. Instead of a dozen checks with which to pay a dozen 
bills, one check and one operation settles the account. 

Department store bills are supposed to be paid the first of each 
month, or not later than the 10th of the month. Some stores 
allow fifteen days after the first of the month before payment is 
insisted upon. Of course, if one wishes to keep his credit good, such 

7 



86 THE BUSINESS OF THE HOUSEHOLD 

bills will be paid before the expiration of the last day allowed, 
but in an emergency these days of grace may be used. In this way 
such an account gives a family from forty to forty-five days credit. 
As an illustration, goods purchased the first of October will be 
billed November 1st, while the limit fixed for the payment of the 
bill is usually ten days later, or November 10th, and in some cases 
fifteen days later. 

Many stores advertise that if Christmas purchases are made 
before a certain date in December, say the fifteenth, that all such 
purchases will be charged on the January bill, thus giving February 
1st as the date for presentation of the bill, with an additional ten 
days for payment. 

Of course there are many who belittle such courtesies, but on 
the other hand, a credit of thirty to forty days has been a god-send 
to many a family in an emergency. 

Charge accounts of this nature make it possible, under certain 
circumstances, to secure articles of clothing needed immediately, 
whereas if cash had to be paid, it might not be forthcoming until 
the following month. It makes possible the purchase of true bar- 
gains — articles sold at les>s than their real value to the purchaser. 
There are few families, no matter how unlimited their wealth, 
that are not at some time hampered for ready cash. Especially is 
this true of the low-salaried man and wage-earner, or the man of 
small means whose capital is tied up in business, or in some invest- 
ment such as the purchase of a home. Sickness and death, and 
other unforeseen emergencies, often bring about temporary em- 
barrassments and credit of this nature is not to be despised. 

Abuse of Credit. — " There is nothing so timid as credit " is a 
well-known statement. There is nothing so easily abused as credit, 
and there is little of a financial nature so valuable as credit. For 
these reasons, one should prize it and cherish it, and avoid every 
appearance of abusing it. Bills should be paid promptly, and the 
extra time given by merchants for the payment of bills should not 
be used unless absolutely necessary. The suggestions regarding 
the full use of credit are all' legitimate, but they are not made for 
the purpose of urging anyone to use their credit to the limit, but 
merely to point out the extent to which credit of this nature may 
be available in an emergency. The record of one's check stubs 
should be kept accurately, and the greatest care should be taken 



FINANCING THE FAMILY 87 

not to overdraw one's account or even draw one's balance down to 
too small a reserve. 

x\nother phase of the subject of credit that needs to be con- 
sidered is that of the relation of credit to the retailer and distributer. 

Retailer's Credit. — It is a well-known fact that many jobbers 
and wholesalers allow their retail dealers a discount of 2 per cent, 
from the amount due if their accounts are paid upon the receipt of 
bills, or within a reasonable time thereafter, generally specified on 
the bill by the jobber or wholesaler. This practice is known among 
retailers as " discounting " their bills. " Cash " payment has come 
to mean ten or thirty days after the date of a bill by many firms ; that 
is various lines of industry adopt a standard rule permitting a 
certain credit. In the grocery trade, thirty days is usually allowed 
the retailer, and if his bill is paid within or before that period, 
and the individual firm allows a cash discount at all, the dealer is 
permitted to deduct that percentage from the face of his bill. Other 
businesses allow sixty to ninety days' credit, before a bill needs to 
be paid. 

This practice might seem a reasonable argument as to why 
the retailer should allow his customer a limited credit of thirty days 
in which to pay his bills. 

Retail Customer Should Be Allowed a Discount for 
" Cash." — On the other hand, if the wholesaler is willing to allow 
the dealer a discount for cash, why should not the dealer allow the 
retail customer a similar discount for cash payments? There 
seems no good reason why the cash customer should not be allowed 
such a discount. In discussing this subject, many have advised a 
ten per cent, discount for the cash retail customer; but when re- 
tailers are allowed smaller discounts than this from the wholesalers, 
it is not fair to ask the retailer to grant his customer a greater 
discount for cash, than he can secure from the wholesaler. 

Trade discounts for cash vary from 1 per cent, to 5 per cent, 
and probably the average would be about 2 per cent. 

Some One Must Pay for Credit. — The public should not lose 
sight of the fact that credit must be paid for by some one. Credit 
extended to customers often means that the dealer must borrow 
money with which to carry on his business, and borrowed money 
must be paid for in the form of interest which is a charge on the 
business. The only way this charge can be recovered is by adding 



88 THE BUSINESS OF THE HOUSEHOLD 

it to the selling price, so that after all, it is the consumer that 
indirectly pays for the extension of credit. Unless the store gives 
a discount for cash every purchaser Kelps to pay this extra price. 
This subject is touched upon in the chapter pertaining to the rising 
cost of living. 

Borrowing Money of the Bank. — In case of emergencies, a 
family may be hampered for cash with which to pay current bills. 
To allow bills from tradesmen to remain unpaid beyond regular 
limits of credit is poor policy, as it destroys the credit of the 
family and adds to the financial burden of the dealers. They must 
carry such accounts, and if many customers resorted to delayed pay- 
ments, the dealer in turn finds difficulties in meeting his own obli- 
gations. He may be compelled to borrow money from the bank 
and pay interest upon the loan in order to protect his credit with 
the wholesalers. 

In such a predicament the head of the family should arrange 
a loan with the local bank for enough money to tide the family over 
the emergency. If any one is to pay interest in such a case, it 
should be the debtor represented by the family and not the creditor 
represented by the dealer. 

Banks make reasonable loans for periods of thirty, sixty and 
ninety days, and usually charge six per cent, interest for the accom- 
modation. The amount of the interest for the period of the loan 
is deducted from the principal, and the balance called the proceeds 
is credited to the account of the borrower or paid in cash as desired. 
For instance, a loan of $150 for ninety days at 6 per cent, would 
yield the borrower $147.75, the interest $2.25 having been deducted 
from the face of the note. 

The date a note is due is called the date of maturity. Most states 
allow what is known as " days of grace," generally consisting of 
three days after the date of maturity, in which a customer has an 
opportunity of paying the obligation due, before further action 
may be taken by the creditor. If a note falls due May 15th, the 
debtor has until May 18th before legal action can be taken to collect 
the note. 

If a note falls due on a Sunday or a holiday, its date of (maturity 
would be the next business day. If Saturday was a holiday and a 
note was due on that day, the borrower would have until Monday 
to pay the note. 



FINANCING THE FAMILY 89 

BUYING ON THE INSTALMENT PLAN 

" Credit " and " instalments " to many people mean the same 
thing, but they are not synonymous. Credit is based upon some- 
thing we already have, such as real or personal property; cash on 
hand or in the bank; character and a reputation for honesty and 
promptness, and earning ability. Instalments to a certain extent 
are mortgages on the future; as a rule, they are based upon pros- 
pective earning capacity, and if that is their only security, the risk 
is uncertain, as sickness, death, accident and idleness may in a day 
sweep away such protection. 

There has been much prejudice against this method of buying, 
and it has been blamed for the improvidence of many, but odium 
should not be attached to the system which belongs to the abuse of 
the system. There are impecunious people who likewise abuse their 
credit, and who would run through every dollar that might be left 
them. There is a feeling that buying that for which one is not able 
to pay ready cash is an evidence of shiftlessness and a confession of 
limited means. This sentiment, owing somewhat to the improved 
methods of handling instalment accounts, is gradually wearing 
away. 

Disadvantages of Instalments. — What are some of the objec- 
tions to the instalment system? 

The instalment method of buying began with the purchase of 
furniture and household fittings. In the aggregate, the cost of 
fitting a new home amounts to a considerable sum, however simple 
may be the home ; hence the inability of everyone to pay cash, not 
only limited the number who could afford to set up housekeeping, 
but also limited sales and consequently the dealer's output, which 
gave rise to the instalment system. 

Patrons of the better class houses, naturally did not feel it such 
a hardship to meet the expense involved in the purchase of house- 
hold equipment, and so it fell to the cheaper class of dealers who 
catered to those of limited means to inaugurate this system. 

Taking advantage of the public's necessities, the allurement of 
easy buying and easy payments enabled them to palm off inferior 
goods upon unsuspecting purchasers. Not only were the articles 
of sale inferior in material and construction, but the prices asked 
were as much and in many cases more than those asked by reputable 
dealers for a better line of goods. For these reasons the system soon 
fell into disrepute, and to such an extent, that many firms of this 



90 THE BUSINESS OF THE HOUSEHOLD 

character openly advertised to deliver all goods in a plain and un- 
marked wagons," so that the public who patronized them might be 
saved the humiliation of having neighbors see before their door 
an instalment company's wagon. 

The disadvantages of this system do not rest alone upon false 
pride. If buying on this plan means cheaply constructed and shoddy 
furniture; if it meanjs higher prices than charged elsewhere for 
better merchandise ; if it means the payment of high rates of interest 
on the unpaid bill, this form of buying should be avoided. 

If instalment buying causes one to lose one's sense of perspective 
resulting in the purchase of expensive phonographs, piano-players, 
automobiles and other things beyond one's economic standard, and 
beyond one's ability to pay without the sacrifice of real necessities, 
then instalment buying is all wrong. Many a small house that repre- 
sents a value of only two or three thousand dollars boasts of a 
garage on the rear of the lot. These things mean deferred or instal- 
ment payments. They mean that money is being spent for luxuries 
that under such conditions could only be obtained through such 
methods of payment. They mean that suitable living conditions, 
environment, food, clothing and education must be slighted, if not 
neglected, in order to pay for the possession of the piano-player 
or the automobile. These are the principal disadvantages of 
instalments. 

Advantages of Instalments. — Buying on the instalment plan is 
open to the same objections and the same advantages as " credit." 
Both may be abused. Purchasing on the instalment plan, in a way, 
is but an extension of the credit system, although not based upon 
the same principle. Although of a 'similar nature, the objections - 
are more serious and the advantages not so valuable as that which 
obtains under the credit system. 

The business done by the early instalment houses became so 
great that reliable firms, especially those handling merchandise run- 
ning into large sums of money, felt it necessary to resort to the 
part-payment plan in order to compete and to dispose of their wares. 
In the adoption of the instalment system, however, the better houses 
perfected the plan and did away with many of its abuses, thus 
forcing the cheaper concerns to discard their old methods. To-day 
the instalment system is an established and an economic factor in 
the business world. 

That this system contributes to extravagance is true only of 



FINANCING THE FAMILY 91 

that class of people who under any circumstances would be ex- 
travagant, but they are of the type of people, who having only ten 
dollars in the house would spend the greater part of it for table 
luxuries. To the provident, the careful and the ambitious, the 
instalment system holds out no dangers. It simply extends their 
credit and gives an opportunity of possessing at once necessities 
that otherwise they could not enjoy for months or years to come. 

In these days of economic pressure it is a difficult matter for 
young people just starting out in life to find the means with which 
to equip a home and at the same time maintain that home. Three 
hundred dollars would be a modest sum under any circumstances 
with which to furnish a most unpretentious home. Of course, all 
young people in starting should have some money ahead, and the 
use of the instalment method of buying should come in only as a 
supplement to savings on hand. It is a mistake for young people 
just starting out to purchase special suites of furniture, or even 
perhaps to attempt to furnish a house throughout on the instalment 
plan. It is better to buy the minimum requisites first, such as are 
most necessary, and then from time to time select additional articles 
as means permit. To such, this plan if not abused, is a legitimate 
method in family finance, and the right people need have no fear 
that it will lead them into extravagance. 

Instalments Another Method of Saving. — Of course, in the 
consideration of any phase of human activity, it is presupposed that 
common sense and fair judgment exist. The lack of judgment 
would rob many a legitimate undertaking, and many a business 
principle, of its worth and value. 

There are cases where the instalment plan can be made the basis 
of economy and saving, in place of its being the cause of extrava- 
gance. A suitably equipped home is necessary to permanent happi- 
ness and well-being. To deny oneself of life's necessities, or even 
of some of its so-called luxuries, year after year, because of inability 
to accumulate in one sum several hundred dollars, is a grievous 
mistake. 

Such forced economy, if practiced for several years, will deter- 
mine the groove in which will run the family wheels for a long 
period of time, if not for life. The final development of a home 
is the result of a process that extends over years. There are many 
who can look back after ten, twenty and even forty years and honestly 
say, that at no one time have they ever accumulated sufficient money 



92 THE BUSINESS OF THE HOUSEHOLD 

with which to purchase a piano or to properly equip a home. One's 
laudable ambitions should be gratified. If not abused, the instal- 
ment plan makes this possible, permitting of the decent furnishing 
of a house, long before it otherwise might be possible. 

In another way it is constantly adding to one's possessions. 
There are thousands of wage-earners and men of salary who never 
have acquired the habit or ability to save. To such, the instalment 
plan has been a salvation, because it made possible not only the 
necessities but some of the justifiable luxuries of life, and at the 
same time it added to their material possessions in a tangible man- 
ner. Another important argument in favor of instalments is the 
fact that the necessity of making regular and systematic payments, 
at definite intervals, over a long period of time, has fixed the habit 
of saving for many who never before had been able to lay aside one 
dollar. They have found that they can lay aside a certain sum for 
a definite purpose each week or month, and when that obligation has 
been cancelled, they realize that if they can do it for one purpose 
they can do it for another, which eventually means a savings 
account at the bank. 

The purchase of a house, its proper equipment, and even its 
adornment, with those things that contribute to the real culture 
of its inmates, these are all laudable ambitions, and if they cannot 
be gratified because of the lack of ready funds, there should be no 
hesitation or feeling of false pride to deter one from taking advantage 
of the instalment plan. 

Especially is this true in relation to the purchase of a house. 
A few hundred dollars cash, and the monthly payment of a certain 
sum, means the possession, of a house and a home that might never 
be acquired, if one waited for the accumulation of sufficient funds 
with which to purchase it outright. 

Luxuries on the Instalment Plan. — The abuse of the instal- 
ment system has already been mentioned. The term luxury has 
become somewhat of a misnomer. Some things that once were 
considered luxuries are now looked upon as necessities. A mere 
existence is no longer sufficient for the average American family. 
One has a right to expect and ask for more than a mere existence. 

The feeding of the body, the clothing and housing of the same, 
are not all that is necessary. One's higher nature should be cher- 
ished and developed and that which rightfully contributes to real 
culture and true spiritual development may be considered a necessity. 



FINANCING THE FAMILY 93 

A natural love for music, for instance, should be gratified if 
possible, and if the material necessities are being met by the family 
income without sacrifice, one need not hesitate to resort to the instal- 
ment system in order to secure a piano or any other musical instru- 
ment. . There is, of course, a limit to this argument, but that limit 
is bounded only by common sense. It would be wrong for one 
whose life is a struggle for existence ; whose home is mortgaged and 
whose family may be in need of food or clothing or the material 
necessities of life — it would be absurd to suggest that such a person 
invest in an automobile, a piano or a phonograph, simply because 
these things may be secured on the instalment plan. 

Wisely used, however, the instalment plan presents opportunities 
that should neither be discounted nor disregarded. 

QUESTIONS 

1. In what way should the family be a co-operative institution? 

2. Should self-supporting children living at home pay parents board? If 

so, on what basis should such payments be figured? 

3. How much does it cost in your community for a self-supporting young 

woman to live comfortably? How much of this amount represents 
room rent? board? laundry? clothing? 

4. What is meant by "Credit" ? 

5. What are the advantages of credit, of instalment buying, of a charge 

account? What are their disadvantages? 

6. Make a budget for a young woman supporting herself and not living at 

home, supposing that the weekly salary is twelve dollars? 

7. In case of emergency, should a family that has dealt with tradesmen 

for a number of years, ask for an extension of credit? If not, in what 
way should they endeavor to tide themselves over the emergency? 

8. How may "credit" be abused? 

9. Should interest be paid on instalment accounts? 

10. When, and for what, is the "instalment plan" warranted?" 

11. In what way may instalment buying contribute to extravagance; form 

a basis for savings? 

PROBLEMS AND DEMONSTRATIONS 

1. Ascertain from one or more reputable dealers on what terms furniture 

may be purchased. If possible, secure a blank contract used by mer- 
chants in selling goods on the instalment plan, and explain its prin- 
cipal features. 

2. A family purchased a piano on the instalment plan, paying $60.00 cash, 

and $15.00 a month until the balance due was paid. It took three 
years to pay for the piano. What was the price of the instrument? 

3. At the end of the first month, 7 cents interest was charged; the second 

month 14 cents, the third month 21 cents, and the same way 7 cents 
was added to each additional monthly instalment. How much interest 
was paid in all ? 



94 THE BUSINESS OF THE HOUSEHOLD 

4. What was the total cost of the piano, including interest ? 

5. Make a list of the necessities required in fitting up a modest home; 

assume an amount available in cash and the balance to be provided 
by instalment credit; how large a monthly repayment on instalment 
account will be required? 

6. Procure a "cash slip" if possible showing a purchase of groceries or 

meat from a local store; a slip from a department store showing the 
purchase of any goods; a monthly bill from a local store or from a 
department store. 

7. If goods have been returned on any of these bills, show in what way 

credit has been given for the same. 

8. Explain the method of returning goods for which cash has been paid 

to a department store; explain the same transaction if goods have 
been bought on credit. 

THEMES FOR DEBATE 
Resolved: 

1. That Paying Cash is a more economical thing to do than the adoption 

of the Charge System. 

2. That buying on the Instalment Plan is inimical to the welfare of the 

average home. 

3. That it is as necessary for the Family to establish credit as it is for 

the Business Man. 

REFERENCES 

Bosanquet, H., The Family. The Macmillan Co. 

Farmers' Bulletin 746, The Farmer's Income. U. S. Dept. of Agriculture. 

Farmers' Bulletin 635, What the Farm Contributes Directly to the 

Farmer's Living. U. S. Dept. of Agriculture. 
Farmers' Bulletin 661, A Method of Analyzing the Farm Business. 

U. S. Dept. of Agriculture. 
Herrick, M. T., Rural Credits. D. Appleton Co. 
Keys, C. M., How to Finance the Building of a Little Home. Ladies 

Home Journal. 
Richards, E. H., Cost of Shelter. J. Wiley & Sons. 
White, C E., What You Should Know When Building a Little House. 

Ladies Home Journal. 



CHAPTER IX 

HIGH PRICES AND MODERN PROBLEMS 
OF LIVING 

" High-Living." — " The cost of high-living " is a phrase re- 
cently invented in the discussion of the causes that have contrib- 
uted to the " high cost of living." 

It is true that there are many things which we consider necessi- 
ties which our parents looked upon as luxuries. We have a right to 
consider some of them as necessities; but others are unjustifiable ex- 
penditures. Many a girl and woman is to-day wearing shoes that cost 
ten to twenty dollars a pair. Automobiles and thousand-dollar piano- 
players and expensive talking-machines are common to many a home 
being supported upon a small salary. Social customs are indulged in 
that should only belong to the wealthy. 

Suppose the average family should name over the things they 
have and enjoy which could be dispensed with without real hardship 
or inconvenience, and without lowering one's standard of living ! If 
we must live in the exclusive neighborhood affected by the rich, that 
is, ape others ; if we must on a two or a three-thousand-dollar-a-year 
income try to live on the same scale as the family having an income 
of five or ten thousand, then our standards are false. We are con- 
tributing directly to the high cost of living because we are indulging 
in " high-living." 

The High Cost of Living. — Although the economist talks about 
the cost of " high-living," the present high cost of decent living is 
positively alarming. Never in the history of the world has the price 
of necessities been so high, and year by year they continue to ad- 
vance. In the fifteen years before the war, the retail prices of com- 
mon foods increased two-thirds over prices prevailing from 1890 to 
1900, and the war conditions sent them much higher. Economists 
tell us that perhaps never again will low prices for commodities pre- 
vail. Whether this is true or not, some solution for the present prob- 
lem must be found, and one of the solutions is the training of those 
who expend the family income in the selection and purchase of food 
and other materials for the home ; and how to proportion the availa- 
ble fund among all the expenditures that modern life requires. 

95 



96 THE BUSINESS OF THE HOUSEHOLD 

Wages and Salaries. — It has only been in specialized, or limited 
fields of endeavor that wages and salaries have greatly advanced, 
except under abnormal conditions. It is true that Unionism has 
secured better standards of living for the unionized, workman, but 
in so doing, in some instances, it has made awards to certain classes 
of labor that are perhaps unfair, and this burden is in part thrown 
upon the shoulders of the non-unionized wage-earner, as represented 
by the clerk, the professional man, and that undefined mass known 
as the " middle classes." 

The " Middle Class " the Real Burden Bearers.— If capital 
demands more return upon investment in the form of dividends, or 
if unionized labor demands better wages from capital, this unpro- 
tected " middle class " must bear its share of the increase, without a 
corresponding rise in wages, and so between the two, the average 
citizen who neither can be a capitalist nor a Union man, is constantly 
being ground to the point of desperation. 

Capital is necessary with which to maintain our industries and 
Unionism is perhaps as necessary to protect labor against the unjust 
demands of capital, so that it is not the well-to-do, or the unionized 
tradesman, that demands the attention of the economist so much as 
this mythical and yet very real middle-class. During the past twenty 
years the earning capacity of unorganized labor has advanced but 
little, except as influenced by abnormal or local conditions, but the 
purchasing value of the dollar has greatly decreased. Under such 
conditions most people must either sacrifice their standards of living 
or forfeit the accumulation of money through saving. 

Abnormal Conditions Affect Prices and Wages. — Abnormal 
conditions may affect wages as well as prices. For instance, during 
the war the demand for munitions and war supplies of various kinds 
brought about an abnormal demand which increased wages in such 
plants and increased wages drew laborers from many other activi- 
ties. In these, in turn, higher wages had to be paid to hold the labor 
force, so that to a certain extent the shortage of labor in many fields 
helped to raise the temporary wage of even the common street la- 
borer, but the general wage increase has not been equal to the in- 
crease in prices. 

The following statistics of the Federal Bureau of Labor show 
the increase in the retail price of foods, based on the market of forty 
industrial American cities from 1890 to 1913, or just before the in- 
fluence of the war manifested itself as a factor in raising prices. 



HIGH PRICES AND MODERN PROBLEMS OF LIVING 97 

These prices are based upon " an index figure "; that is, the 
prices of an article for the years 1890 to 1899 inclusive are averaged 
and the average in each instance is taken as a basis of comparison, 
which is given the value 100 as " index figure." 

The figures for the subsequent years are compared with this stan- 
dard or average, showing either increases or decreases in price above 
or below the index 100. The table is given below and is to be read 
as follows: if the average price of sirloin steak during the years 
1890-99 be represented by 100 units, then the price in 1896 would 
be stated as 98.8 units ; in 1900, as 107.1 ; in 1907, as 116.7 ; in 1910, 
as 134; and in 1913 as 171.3 units. 

RETAIL PRICES OF FOOD ARTICLES IN THE UNITED STATES. 
AVERAGE PRICES FOR 

Commodity. 1890-99 1896 1900 1907 1910 1913 

Sirloin Steak 100 98.8 107.1 116.7 134.0 171.3 

Round Steak 100 100.5 109.8 128.4 149.9 199.5 

Rib Roast 100 99.4 109.3 123.0 137.7 172.0 

Pork Chops 100 97.8 108.9 140.9 178.3 213.8 

Bacon, smoked 100 96.3 110.3 157.7 204.4 225.9 

Ham, smoked 100 96.5 106.9 131.0 159.4 181.2 

Lard, pure 100 92.1 104.9 133.5 172.9 166.6 

Hens 100 96.1 99.6 131.3 155.0 171.8 

Wheat flour 100 94.2 94.6 118.2 135.9 127.4 

Corn Meal 100 92.8 95.6 133.5 147.9 160.4 

Eggs— strictly fresh 100 90.3 99.1 138.2 158.2 174.8 

Butter— creamery 100 93.1 101.2 127.3 139.9 153.2 

Potatoes— Irish 100 78.8 92.8 122.2 119.5 151.2 

Sugar— granulated 100 96.2 103.9 98.7 102.5 95.3 

Milk 100 100.1 100.0 118.9 131.6 140.2 

Average for the fifteen 

articles 100 94.9 102.9 128.0 148.5 167.0 

The Government claims that commodity prices for February 
1922 are 73% greater than they were in 1914. 

In ten years, the department's experts estimate, the advance in 
the cost of food has so far outstripped wage increases that the work- 
man who drew $3 a day in 1907, although in 1917 he received on an 
average of $3.48, really found himself in that year, because of higher 
prices, just 69 cents a day worse off than in 1907. It is estimated 
that if a dollar's worth of food bought in 1907 weighed ten pounds 
it would weigh in 1917 a trifle more than seven pounds. 

u Despite the average increase of 19 per cent, in w r ages an hour 
in the last ten years/' the department's statement savs, "and despite 
7 



98 THE BUSINESS OP THE HOUSEHOLD 

a cut in hours worked of 4 per cent., the rising cost of foods has op- 
erated to reduce the pay of the American workingman about 16 per 
cent., expressed in terms of food his dollar will buy. 

"A workingman who made $3 a day in 1907, working ten 
hours a day, in 1916 worked nine hours and thirty-six minutes a day 
and drew $3.48 for it, but it cost him $4.17 to buy the same quantity 
of food his $3 would cover in 1907. 

" Cold storage, retailing, reshipping, and withholding of com- 
modities from market are suspected as contributing to the present 
abnormal rise in the prices. Whether some persons have conspired 
to engross the markets the department of labor cannot state. But 
the reports of the bureau of labor statistics seem to lend some color 
to such an opinion." The war of course has greatly added to the 
cost of food. 

Causes of Rising Cost. — Why do the prices of necessities con- 
tinue to rise ? This is a question that has confronted nearly every 
wage-earner during the past few years. The causes that have led to 
the seemingly exorbitant high prices that obtain at present, have 
baffled even those who have made a careful study of the subject. A 
few of the factors that help to establish prices may be mentioned in 
a general way. 

Walter E. Clark in his book " The Cost of Living " divides the 
causes for high prices into " Supply Causes " and " Demand 
Causes," according to the familiar fact that "Supply and Demand 
determine prices," and he classifies these causes as, follows : 

I. "Supply Causes/' — Those restricting the supply of things 
for sale in markets, (a) Exhausting natural resources. (&) Ee- 
tailers' undue profits and short weights, (c) Adulterated goods. 
(d) Cold Storage, (e) Labor Unions. (/) Excessive transporta- 
tion rates, (g) Tariffs, (h) Trusts. 

II. " Demand Causes!' — Those increasing the purchase of goods 
in markets, (i) Increasing population and immigration. (/) 
Speculation, (k) Extravagance and waste. (I) Eising standard 
of living, (m) Increasing gold supply. 

To the Supply Causes might be added "Scarcity of Labor" and 
to the Demand Causes, "Increasing Exports." The war was effective 
in increasing prices both by restricting supply, and by stimulating 
demand. 

Supply and Demand. — This is the basic law upon which is de- 
termined the price of all commodities. If any supply is not equal to 
the demand, there is less than is needed and 1 this very fact increases 



HIGH PRICES AND MODERN PROBLEMS OF LIVING 99 

the demand, so that prices advance in response to the highest bidders 
in the open market. 

This country needs a stated amount of wheat annually with 
which to feed its population ; if the wheat crop for the year is a total 
or partial failure, since more want wheat than can be supplied, some 
are willing to pay higher prices in order to get it and wheat prices 
go up because the supply is limited. If the crop is normal and the 
population has increased, or the normal population suddenly finds 
new uses for wheat products, the consumption is increased, relatively 
more is demanded than can be supplied, and again prices go up. If 
we export more wheat than we should, the available supply is de- 
creased and again prices rise. There are many factors that control 
both the supply of, as well as the demand for, products ; but unless 
supply keeps pace with normal demands, the result must be increased 
prices. 

Labor a Factor in Determining Prices. — Scarcity of farm 
labor means inability to harvest the crops properly. The farmer 
loses his crops or he must pay more than ordinary wages to secure 
help, and this increased cost must somehow be met. Even though the 
farmer may not be able to extract it immediately from the consumer 
in the form of a directly increased price, his loss reacts upon farm 
conditions, discouraging farmers from increasing production, and 
with a smaller supply prices go up. The burden finally falls upon 
the consumer. 

In many lines of industry labor has organized and through con- 
certed action has forced higher wages from employers. The in- 
creased wage must be met, so it is passed on in the form of prices 
by manufacturer, wholesaler, jobber and retailer, and the ultimate 
consumer again pays the bill. 

A scarcity of labor in any branch of industry results in condi- 
tions similar to those experienced by the farmer under like con- 
ditions. Unusual demands for labor in one industry mean higher 
wages in that industry and thus labor isi attracted to the industry 
bidding through the highest wage. The higher wage means a direct 
increase in the price of the commodity manufactured, while the 
other industry stripped of its man-power suffers from low produc- 
tion, which means a restriction of supply and higher prices. Ab- 
normal conditions, such as war, whether within the country or in 
some other country, which increase demand in relation to supply, 
whether of commodities or of labor; as well as the added demand 



100 THE BUSINESS OF THE HOUSEHOLD 

for capital in war industries which deflects capital from its normal 
channels of investment, all create higher prices. 

The average citizen feeling the pinch of economy necessary to 
meet rising costs, gives little concern to the fundamental economic 
conditions that control prices, feeling himself far removed from 
them, or perhaps helplessly impotent to change them. There might, 
however, be some very direct influences brought to bear upon prices 
if an intelligent study and effort were made by consumers generally. 

Study of Social Conditions Necessary. — It should not be suf- 
ficient to study the economies of the home only. There are many 
causes for high prices operating in the outside community and na- 
tion, and every man and woman owes it to society to study the eco- 
nomic conditions of the country at large. Is it the natural law 
of supply and demand alone that is inflating prices or are there 
abuses in our system of distribution? 

If there are abuses in the handling of food products they should 
be done away with, but before we can give to the community intelli- 
gent help, we must first study the causes of existing conditions. 

Unjust Weights and Food Adulterations. — How much is 
lost to the buying public through unjust weights is not known, but 
it must be considerable. In some communities there are regulations 
and laws governing the weight of a standard loaf of bread. The 
Massachusetts Commission on the Cost of Living quotes Bulletin 
KTo. 9, published by the Department of Weights and Measures for 
that state, as follows : 

" Of 4983 10-cent loaves reweighed, 29.2 per cent, were deficient 
in weight, the average deficiency being 1.226 ounces. The loaves in 
question all bore a statement of weight on the wrappers. There ap- 
pears to be no doubt that the scaling down of the weight was delib- 
erate and intentional in most instances." 

Deficient weight is not confined to bread but may be found 
in other articles of food. We have the dishonest scale and the dis- 
honest dealer, as well as the dishonest measure. Much might be 
accomplished by vigilance in enforcing the laws pertaining to legal 
weights and measures, resulting in a decided saving for the average 
purchaser. 

The loss from adulterants might be considered as affecting a just 
measure or weight. It is claimed that this loss amounts to a hundred 
million dollars a year to the American consumer. The Pure Food 
laws have done considerable to reduce this loss by food adulteration, 



HIGH PRICES AND MODERN PROBLEMS OP LIVING 101 

and consumers should read the labels on every food container to see 
if it bearsi the "pure food " and net- weight labels required in Inter- 
state Commerce, and others required locally by many states. 

The section on Weights and Measures should be studied carefully 
in connection with this subject. (See p. 220.) 

Cold Storage. — To what extent Cold Storage plays a part in 
making high prices is not known. It does make possible cheaper 
butter, eggs and other products in seasons of the year when they are 
scarce, but in times of surplus it also provides the opportunity of 
hoarding vast accumulations of supplies in attempts to corner the 
market, and this raises prices. 

Cold Storage houses should be subject to the investigation of 
the authorities at any time, and published statements should be given 
out as to the amount of food products in storage at stated intervals 
throughout the year. Certain products, perhaps, should be limited 
as to the time that they may be kept in storage, and perhaps it should 
be possible to stamp food containers with such information. 

Transportation. — That our distributing system is far from 
perfect was shown during the winter of 1916-17, when food-riots 
took place in some of the larger cities of this country, despite 
the fact that there seemed to be an ample supply of foodstuffs in 
the principal regions of production. This apparent shortage was 
due to the inability of the railroads to control the distribution of the 
country. The demand for war materials to be shipped abroad had 
grown so great, that traffic in the east was blocked by miles of un- 
loaded freight cars, while the west seemed unable to secure cars in 
which to move its food products to the east. This, however, repre- 
sented an abnormal condition. 

The fuel famine in 1917-1918 was due largely to transportation 
difficulties. 

Exhausting Natural Resources. — Failure of crops has been 
classified under this heading, although it specifically applies to the 
reduction of the arable acreage of the country, the devastation of 
natural forests through fire, the wastage of timber through extrava- 
gant methods of cutting, the exhaustion of the soil, and similar 
wastes. 

Timber has been cut ruthlessly without much regard for re- 
growth ; the mining of coal has been conducted extravagantly and 
oil fields have been exhausted as though there was an illimitable 
supply. For generations the farms of New England were worked 



102 THE BUSINESS OF THE HOUSEHOLD 

until the soil was almost exhausted before fertilizers were used to 
reclaim it. All these are factors that add to high prices and each 
one of these factors represents subjects worthy of investigation. 

Tariff. — It has been assumed quite generally that a high pro- 
tective tariff means high prices, as such a tariff is supposed to pre- 
vent imports that have been manufactured or produced abroad at 
much lower prices than they can be produced in this country, thus 
giving the manufacturers or producers of the protected articles a 
seeming monopoly which might result in uncontrolled prices. A 
protective tariff does not, however, necessarily mean higher retail 
prices in general. That it does contribute to the price of certain 
articles is true, but it is a small factor in determining the cause of 
the advancing prices during the past few years of the high protec- 
tion period. 

The Trusts. — The control of large industries, generally known 
as Trusts has resulted in a high efficiency in the business under the 
control of such organizations. Production has increased almost be- 
yond measure ; the cost of production has been greatly reduced, and 
in many cases the methods of distribution have been perfected, so 
that while in a few instances such monopolies may have been the 
cause of high prices, the history of trust-controlled industries shows 
that they have resulted in a lowering instead of a raising of retail 
prices as compared with those that obtained before the day of the 
Trust. 

That the Trust has resulted in abuses that need to be corrected 
and that they may be inimical to public welfare, in curtailing oppor- 
tunity and creating unfair competition may not be open to argument, 
but we are now only concerned with their relation to retail prices, 
which seems to have been generally favorable to the consumer. 

Increased Gold Supply. — This is one of the real causes for 
high prices. Whenever the production of gold increases out of pro- 
portion to the growth of business, gold itself, like any commodity 
produced in excess, becomes cheap, and thus money which is gold's 
value becomes "cheap" ; we know money is cheap because prices quite 
generally advance, although wages and salaries are more or less 
stable. Never in the history of the world has there been so great a 
production of gold as in recent years. Abnormal war conditions have 
brought to this country an unusual proportion of foreign gold. 
Therefore the supply of money in this country suddenly became ab- 
normally plentiful and cheap; and to meet the lowered value of 
money created by so great an influx of gold, prices advanced. 



HIGH PRICES AND MODERN PROBLEMS OF LIVING 103 

The world's gold production from 1860 to 1870 was $1,263,- 
015,000; from 1890 to 1900, $2,101,240,900; and from 1900 to 
1910, $3,780,364,500. The annual production has increased from 
$126,301,500 for the 1860-1870 decade to $460,892,733 during the 
three-year period from 1911-1914. 

Aside from general supply and demand, this gold increase is 
one of the principal causes of high prices, but the serious part of it 
is the fact that high prices and cheap money do not necessarily or 
quickly bring about high wages and salaries, and so the nation is 
confronted with the serious situation of the non-unionized, non- 
capitalist classes being compelled to make a dollar go much further 
than under normal conditions. 

The Fluctuating Dollar. — It is manifestly unfair to measure 
one's earning capacity by a dollar that is directly related to change 
ing prices so that it will buy more or less at one time than another ; 
a dollar that while stable in the number of grains of gold it contains, 
yet fluctuates in what it will buy with every change in prices. 

As an illustration, the four-thousand-dollar-a-year man is really 
only earning three thousand dollars a year or less, measured by the 
purchasing value of his income when he first contracted to work 
for that salary fifteen years ago. The twenty-dollar-a-week clerk, 
ostensibly is earning twenty dollars, but when he comes to exchange 
it for life's necessities it is hardly worth fifteen dollars as a pur- 
chasing medium, because the price of that which he needs has ad- 
vanced to that extent. 

Paying Cash. — Some have urged that retail credit raises 
prices. If the retailers of a community agreed to allow their cus- 
tomers, say 5 per cent, discount for cash, one might have a valid ar- 
gument against the credit system that prevails in the retail busi- 
ness, and the saving effected would prove a considerable factor in 
reducing prices for the average family. One may not like to discon- 
tinue the conveniences of the credit system if no compensation was 
made by the dealer for cash purchases. Organized effort along this 
line may pay in any community. 

No retailer, however, would allow a 5 per cent, discount for 
cash — perhaps 1 per cent, would be possible. A recent movement in 
the grocery retail trade in many communities has resulted in prices 
being set on a cash basis and a charge of 1 per cent, added to the 
total bill of all charge customers for the cost of credit. If a monthly 
bill amounts to $40, 1 per cent., or forty cents, will be charged the 



104 THE BUSINESS OF THE HOUSEHOLD 

customer as the expense of putting the amount on the books. The 
principle is the same as the banker who charges a customer one 
dollar a month for carrying his account, if the average daily balance 
falls below $200, the idea being that such accounts are unprofitable. 
The grocer, however, merely charges what is thought to be the actual 
expense of bookkeeping based upon the dollar purchase. Such a 
distinction between cash and credit prices is fair, though it may not 
be much of a saving. 

With many the advantage of the monthly charge system would 
seem worth more to them than the forty or fifty cents it might cost. 

Retail Deliveries. — An effort is being made in some communi- 
ties on the part of retailers to discontinue delivery of goods pur- 
chased. About 2y 2 per cent, is the estimated cost for deliveries in 
the retail grocery business, while department store deliveries run 
much higher, being 4 to 5 per cent, and in some cases as high as 8 
per cent. 

If the retail customer could save this expense to the store there 
is no reason why the customer should not be benefitted to that ex- 
tent, but in order to effect such savings it would be necessary to 
establish a uniform practice. So long as a store must deliver to part 
of its customers the proportionate savings derived from the non- 
delivery customers is not sufficient to warrant the dealer in making 
much of a discount to those who are willing to carry home their 
purchases. If the actual cost of distribution was proportionately 
taxed to those demanding deliveries, the same as charge customers 
are taxed in certain places, it might serve to discourage the system ; 
but unless all merchants in a community agree to such a plan, com- 
petition will forbid an individual merchant from adopting it for 
fear of losing trade. Practically, a delivery service must be con- 
tinued ; but just as practically all can help by using it only to the 
extent necessary. 

Returned Goods. — This is an evil in the department store 
trade, and one that such stores are trying to eliminate. The desire 
to satisfy customers by allowing them to take home goods for ex- 
amination and garments for trying on has been greatly abused. 
Dishonest customers have been known to order garments for the 
express purpose of wearing them for some special occasion, return- 
ing them perhaps the next day. Eeturned garments often get 
soiled and damaged, in most cases they are mussed, and usually need 
pressing after being returned, so that the expense of the "returned 



HIGH PRICES AND MODERN PROBLEMS OF LIVING 105 

goods " department in a large department store is very heavy. The 
added " call and return " of deliveries is another expenditure., and 
all these expenses must be added to the cost of doing business, which 
means increased prices to everybody. 

Department stores figure that about 3 per cent of their total 
C. 0. D. (cash on delivery) sales are returned to them; and of 
course many sales made regularly are returned. Such goods are 
resold, although a certain per cent, must be figured for depreciation. 
The actual cost of maintaining " returned goods " departments, 
with the depreciation resulting is not generally known, but it is 
estimated at about 1 per cent., so that the customer might be saved 
1 per cent, if the practice was done away with. 

Three Opportunities to Save. — The retail purchaser might 
effect a saving in each of the three items mentioned, providing uni- 
formity of action could be effected by retail customers with the deal- 
ers of a community. The statistics show that saving to be as follows ; 

Based on Monthly 
Expenditures of Saving 

Discount for Cash 1 per cent. $50.00 $ .50 

Cost of Delivery 2.5 per cent. 50.00 1.25 

Cost of Returned Goods 1 per cent. 50.00 .50 

Total Saving $2.25 

One may say that one seldom or never abuses the "returned 
goods " privilege, if indeed one avails oneself of it at all, but if the 
system prevails in a community the non-user pays his proportionate 
share of the cost of both those who use and those who abuse it. 

The above figures show that if these three policies of offering 
credit, delivering of purchases and the return of purchases were done 
away with, or reduced, the customer would effect a saving of $2.25, 
or some part thereof, per month on purchases amounting to $50. 

If the "return privilege " does not exist in a community, then 
the saving made possible by the elimination of the other two policies 
would be $1.75 on the same basis of expenditures. 

There probably will always be those who are willing to pay for 
these privileges, but if they are necessary economic factors in 
our social life, then those who use them should bear the full burden 
of their upkeep, while those who wish to dispense with them should 
be allowed a credit or discount equal to the charge made for such 
services. 

The System Magazine (April, 1917) quotes a retail grocer who 
has adopted the following plan : 



106 THE BUSINESS OF THE HOUSEHOLD 

"When we charge an order we add 1 per cent, to cover book- 
keeping cost; and we charge five cents for each delivery, regardless 
of size. The opportunity is therefore given to the customer to save 
the expense of both services if he wishes. 

ee Although we charge five cents for each delivery and one cent 
for every dollar's worth of merchandise charged, the customer pays 
less than before. We are able to quote lower prices because our ex- 
penses are less. 

" Here are a few typical items that show how the customer bene- 
fits by the plan : 

Old prices New prices 

4 bars soap $ .20 $ .16 

1 pound of coffee 35 .32 

1 pound of rice 10 .08 

5 pounds sugar 40 .35 

1 pound sirloin steak 32 .28 

Total $1.37 $1.19 

"If the goods, at the new prices, are both charged and delivered, 
the customer pays two cents for charging and five cents for the 
delivery. His purchase, therefore, amounts to $1.26, as against 
$1.37 under our former plan. 

" The quality of the merchandise has not been changed under 
the new plan. Before we adopted this system 85 per cent, of our busi- 
ness was credit, 90 per cent, of the orders were telephoned in, and 
99 per cent, of the orders were delivered. The immediate result of 
our plan has been considerably to alter these percentages," 

Much may be accomplished by Women's Clubs, or by concerted 
action in a community in co-operation with local merchants, so that 
those who wish the privileges of charge accounts, deliveries and re- 
turns may be taxed to support the cost of such service, while those 
who do not desire to avail themselves of such service may be free 
from the expense now charged to both. 

Conclusions — Reducing Expenses. — It is easy to advise one 
to reduce expenses, but to do it is difficult. The average American 
family should not move into districts occupied by those whose 
standards are much below their own. " Back to the soil " or " out to 
the suburbs 9 * is impractical for the majority, and in many cases it is 
an absurdity to advocate such measures. City-bred men and women, 
untrained to farm work and farm conditions, are not suited to be 
farmers or farmers' wives. Life in the suburbs is generally more ex- 



HIGH PRICES AND MODERN PROBLEMS OF LIVING 107 

pensive than life m the city ; rents are higher, carfare is greater in 
many instances, and for many the time taken going to and from 
work is prohibitive. Under such conditions suburban life becomes 
a luxury for the few. 

Under these conditions the question of saving becomes almost 
an insurmountable problem for the average wage-earner. Abnormal 
conditions in the home, even when the economic situation is normal, 
create a serious problem, but when combined with the high cost of 
living, with sickness and financial reverses, the average wage-earner 
is sorely tried. 

Such is the condition that to-day confronts the head of every 
household, and the student of household management should look 
the facts in the face so that she may learn the best method to cope 
with the situation, whether it be in her own family or in that of her 
parents. 

Household Waste a Factor — Any housewife who honestly ex- 
amines all the facts will be compelled to admit that waste in the 
average family is one of the contributing factors in the cost of liv- 
ing. Just what per cent, of the family income is lost through need- 
less waste may be hard to determine, but here at least is one leak 
that demands the attention of every housekeeper. 

Household Planning Needed. — The lack of proper plan- 
ning, and a neglect to make a family budget that will provide for 
a proper distribution of the income, is another leak that needs to 
be mended. 

There is no doubt that an intelligent effort to keep a practical 
system of household accounts will result in a very considerable sav- 
ing for most families, and if combined with a determination to re- 
duce the amount of waste that obtains in the home, the results will, 
at least in part, offset the rising cost of living. 

QUESTIONS 

1. What is meant by the phrases "the cost of high-living" ? "The high cost 

of living"? 

2. Name some of the luxuries of past generations now considered as neces- 

sities ; some of the modern improvements in dwellings. 

3. Name the things you have which are not absolute necessities. 

4. What do you consider a false standard of living? 

5. What are the causes of the high cost of living? 

6. What is meant by the term "middle classes," by "capitalists," and 

"Union"? 



108 THE BUSINESS OF THE HOUSEHOLD 

7. What is meant by a "fluctuating dollar"; in what way are prices 

affected by the amount of gold? 

8. What may the tariff have to do with the prices of retail commodities ? 

9. In what way may the Trusts operate to raise prices, to reduce them ? 

10. What natural resources are being exhausted ? 

11. Should a cash customer receive a lower price than a credit customer? 

If so, why? 

12. Should tradesmen charge for the delivery of purchases? If so, why? 

13. Should the "return of goods" privilege be abolished? If so, why? 

PROBLEMS AND DEMONSTRATIONS 

1. Prepare a table showing current prices of the principal articles of food. 

Secure "these prices from the tradesmen with whom your family does 
business; if possible, find the prices of the same articles of food during 
any year between 1900 and 1910, by making local inquiries; by securing 
State and Federal labor reports. 

2. Prepare such a table showing the wages in trades now and prior to 

1890. 

3. If in 1910 flour' cost $7.50 per barrel and $12.50 in 1917, what per cent. 

did it advance? 

4. If in 1906 a workman earned $2.00 a day for a ten-hour day's work, and 

if in 1917 he earned $2.40 a day for an eight-hour day's work, based 
on the actual hours of work, what was the per cent, increase of his 
wages ? 

5. If in 1917 it cost the workman $3.00 to buy the same amount of food 

that could be bought for $2.00 in 1906, what would be the per cent, of 
his increased wages in 1917 measured according to its purchasing 
power ? 

6. Ascertain if there are any retail tradesmen in your community, and in 

your neighborhood, who sell for cash only. If so, are their prices 
lower than tradesmen who do both a cash and credit business? 

7. Ascertain if one or more local tradesmen would be willing to make a 

difference in price between the customer who pays cash and the one 
who buys on credit; between the customer who takes purchases 
home and the one who has them delivered? 

8. It is estimated that it costs the tradesmen 2y 2 per cent, for the delivery 

of purchases to customers. If the grocer allowed John Smith this dis- 
count on his purchases, and in addition 1 per cent, discount for cash, 
how much would John Smith save during the year if his grocery bill 
is $40 a month? 

9. If it cost a merchant 4% per cent, of his total sales to maintain a credit 

system, a delivery system and a "returned goods" department, and 
his sales amounted to $60,000 a year, how much a month would he 
save by discontinuing all three privileges? 

10. Is a Woman's Club maintained in your community? As a class, address 

the President of the Club, and ascertain if the Club will not consider 
an effort to induce local tradesmen either to offer a discount for cash 
purchases, for purchases taken home by customers, and for the 
abolition of "returned goods" privileges if they exist, or to make a 
charge for such privileges. 

11. Show in as many ways as possible, just how the war has added to the 

cost of living. 







HIGH PRICES AND MODERN PROBLEMS OF LIVING 109 

THEMES FOR DEBATE 
Resolved that: 

1. The retail delivery and charge system are of more value to the house- 
holder than would be any saving derived from paying cash and carry- 
ing home one's purchases. 
The Cold Storage system is inimical to public welfare. 

3. Competition decreases prices. 

4. The "Trusts" increase prices of commodities. 

5. Labor Unions are more responsible than Trusts for increased prices. 

6. Supply and demand are the real causes of high prices. 

7. Waste of natural resources combined with waste in the kitchen are 

more responsible for high prices than are dishonest weights and 
measures combined with food adulteration. 

8. The increased supply of gold is directly responsible for high prices. 

9. That the war has been the greatest factor in raising the prices of 

commodities. 

REFERENCES 

Clark, W. E., The Cost of Living. A. C. McClurg & Co. 

Fisher, I., Why is the Dollar Shrinking f The Macmillan Co. 

Franklin, F., Cost of Living. Doubleday, Page & Co. 

Layton, W. T., i\N Introduction to the Study of Prices. The Macmillan 

Co. 
Nearing, S., Reducing the Cost of Living. George W. Jacobs & Co. 
Richards, E. H., The Cost of Living. J. Wiley & Sons. 
Rubinow I. M., Recent Trend of W 7 ages. American Economic Review 

(Dec. 1914). 
Ryan, J. A., A Living Wage. The Macmillan Co. 
References on the Cost of Living and Prices. Library of Congress. 
Retail Prices. U. S. Dept. of Labor, Bureau of Labor Statistics. 
Union Scale of Wages and Hours of Labor. U. S. Dept. of Labor, Bureau 

of Labor Statistics. 
Monthly Review, Vol. 4, No. 2, 1917. U. S. Dept. of Labor, Bureau of 

Labor Statistics. 
Wages and Prices of Commodities — Senate Document No. 349, 61st 

Congress, 2nd Session. Dept. of Commerce and Labor. 



PART II 
FACTORS IN THE FAMILY BUDGET 

CHAPTEE X 
LIVING CONDITIONS— HOME OWNERSHIP 

The various general financial principles and processes involved 
in household finance have been examined and we come now to the 
consideration of the individual items that make up the family 
budget. In considering Shelter, one must choose a neighborhood in 
which to reside and schools, churches and transportation facilities 
should be considered, as well as the character of the people in the 
vicinity. The location of stores and markets, and the prices charged 
for necessities and foodstuffs should not be overlooked. 

Advantages and Disadvantages of Suburban Life, — One 
should not overlook the fact that the more desirable the suburb or 
neighborhood, and the better the class of people living there, the 
higher will be rents, taxes and foodstuffs. In many aristocratic 
localities tradesmen have an opportunity of doing business with 
wealthy families and they fix prices accordingly. Many patrons 
cannot afford to pay such prices, but are compelled to do so. Again, 
many wealthy families pay their bills every three to six months, and 
in some cases only once a year. This is an injustice to the tradesman, 
who in turn is forced to fix his prices to protect himself, so that in 
reality the less fortunate families who pay their bills in cash, or 
monthly, pay their share of his burden. 

Many suburbs cannot be reached from the neighboring city for 
less than a ten-cent fare, and this is an additional tax that must be 
counted as a part of one's rent. The time lost in traveling long dis- 
tances to and from work or school is an important factor. Business 
men often lose two hours a day on trains going to and from work. 
Suburban life does not always reduce living expenses. More often 
these conditions make such life impossible to the majority of 
workers. 

There can be no question as to which is more desirable, city or 
suburban life. Gardens, fresh vegetables, lawns, quiet, cleanness 
and fresh air make legitimate appeals, but they must be paid for. 
110 



LIVING CONDITIONS— HOME OWNERSHIP 111 

The suburbs still represent something of the community life of 
the smaller towns and villages. Life revolves around the individual 
home, the church, the lodge, the club and the school. The family 
becomes a unit in the community ; a factor that must be reckoned 
with, whereas in the city one's individuality is merged with the 
masses. 

Advantages of Living in a House. — The advantages of living 
in a city house are the same as those gained through suburban life — 
light, fresh air, and perhaps a garden. A house does give a more 
permanent feeling than does an apartment. The home atmosphere 
seems almost unattainable in an apartment. Those who have never 
known anything different from life in apartments may acquire this 
intangible homelike feeling, but those brought up in houses instead 
of apartments, seldom can reconcile themselves to such life. Where 
there are children there can be no comparison. Children who have 
been raised without an attic to explore and in which to develop their 
imagination; without a cellar laden with winter provisions, and 
without a yard in which to play, have been deprived of an oppor- 
tunity that can be supplied in no other way. There is a sentimental 
value attached to a house and its grounds, the worth of which is in- 
tangible, but real. 

On the other hand, a house means extra work, and extra money 
costs. There is the cleaning of walks, the mowing of lawns and the 
care of the furnace. Water-tax generally must be paid by the ten- 
ant. These are some of the extra expenses that must be met as com- 
pensation for the privilege of living in a house. 

Advantages of Living in an Apartment. — An apartment 
means less work and therefore less service from maids an" other 
help. There is no work placed upon the family in connection with 
its upkeep. There is no fuel to purchase and no furnace to care for. 
The lessened work for a housewife is a temptation to every woman. 
Eent usually includes plenty of hot water at all hours of the day 
and night. The only extra house expense is rent, gas and electricity. 
Some of the larger and better apartments generate electricity on the 
premises and furnish it free to tenants. Some also make their own 
ice and furnish it free. Vacuum cleaners are also furnished in some 
apartments. The solution of this problem of house or apartment 
must be settled according to the needs of the' individual family, as 
well as in relation to income; but one must remember that the 
rent of an apartment includes many things that in a house would 



112 THE BUSINESS OF THE HOUSEHOLD 

have to be paid for separately. As a rule it is cheaper to live in an 
apartment than in a house, since one usually takes a house larger 
than the apartment in which one has been living, and social and 
other demands in a house increase living costs. 

Economic conditions are such that the time may come soon 
when few families in the larger cities can afford to live in a house. 
Until that time comes every family should, while the children are 
young, make an effort to occupy a house rather than an apartment. 

Owning One's Own Home — This problem, both pro and con, 
has been debated in the public prints many times. Some have come 
to the conclusion that they are just as far ahead through renting, as 
they would be had they owned their own home. Accepting this state- 
ment at its face value, it cannot be disputed that in one case the ten- 
ant has a bundle of rent receipts to show for eight or ten years of 
tenancy, while the owner has a house and lot paid for, or par- 
tially paid for, besides having had his rent during all these years. 

Pew people figure, as a part of their cost of ownership, the inter- 
est upon the money invested, or the rent they might secure for their 
house from some other tenant. In other words, owners do not as a 
rule pay themselves rent. 

Eeal estate dealers expect to have gross returns of about 10 per 
cent, upon their investments as a minimum. A piece of property 
costing ten thousand dollars should return at the least one thousand 
dollars a year in rent. The expense of such a house might show the 
following : 

Taxes, probably $ 100.00 

Decorating and cleaning per year 75.00 

Repairs and upkeep 25.00 

Expense $ 200.00 

Net interest on $10,000 . 800.00 

Gross returns $1000.00 

In order to bring in that amount per year, the house would have 
to rent for $1000 a year. In other words, the owner should pay him- 
self $83.33 a month rent, but if his property would bring a greater 
rent to some other tenant, say $100 a month, then the owner 
should pay himself $100 a month. If he cannot afford to live in a 
house that would cost him that much rent, is it good business to live 
in his own house if that house would bring him that much income ? 
Should he not move to cheaper quarters and save the difference? 






LIVING CONDITIONS— HOME OWNERSHIP 113 

There is much to be said in favor of owning one's own home. 
It encourages thrift and habits of economy. It inspires one to lau- 
dable ambitions. It makes for good citizenship. Children without 
its influence are cheated, for the character development secured by 
growing up in one's own home rather than in one rented is in- 
valuable. Paying for one's home means saving. The capital thus ac- 
cumulated is not easily lost and the interest returns are as high as 
could be expected from any investment. 

If one has saved five hundred dollars, or perhaps a thousand, 
many a suitable house may be purchased at -a bargain, the balance of 
the purchase price being secured by a mortgage on the property. By 
laying aside a certain amount each month for rent, taxes and up- 
keep, all expenses may be met and a substantial sum accumulated to 
apply on the mortgage. Instead of a bundle of rent receipts, one 
will soon find that he has a substantial equity in a modest little 
home. 

Many say, " It is just as cheap to rent as it is to own." If one 
only considers the problem by the month or by the year, it may be 
cheaper to rent an apartment than it is to own a house, but when 
we take into consideration that in one instance there is only ten 
years of rent receipts to show for the expenditure, while in the other 
case, one has had the rental of a real home for ten years and at the 
expiration of that period finds himself the owner of an unincum- 
bered house and lot, it is a different story. 

If an initial payment has been made upon a home, in order to 
find its equivalent cost to the owner, one should estimate the yearly 
interest both upon the capital invested and the mortgage, together 
with the taxes and the cost of upkeep, and the sum of these would 
represent the actual annual cost, or the rent the owner should pay 
himself. To this should be added a definite monthly amount to ap- 
ply on the reduction of the principal. 

Following is an example : 

A house and lot was purchased for $5000. The purchaser paid 
$1000 in cash and gave the seller a mortgage for $4000, payable in 
five years, with interest at 5% per cent, per annum. , The taxes 
amounted to $48 a year. Repairs amounted to $25 a year. What 
sum should the purchaser lay by monthly to meet these expenses ? 
In other words, what rent should he pay himself ? 

The purchaser must now provide for the following : 
8 



114 THE BUSINESS OF THE HOUSEHOLD 

Interest at 5% per cent, on $1000.00 invested $ 55.00 

Interest at 5% per cent, on $4000.00 mortgage 220.00 

Taxes per year 48.00 

Repairs, upkeep and insurance per year 37.00 

Total expense per year $360.00 

Rent per month, one twelfth of the above 30.00 

In other words, the owner must pay himself $30 a month rent 
with which to meet his actual expenses in connection with his in- 
vestment (including an allowance of $55 interest on the $1000 al- 
ready invested in the house) ; but this amount does not include any- 
thing to apply on the reduction of his $4000 mortgage. While it is 
true that the $55 interest on his own investment of $1000 represents 
a saving, and that if desired, this could be applied on the reduction 
of the mortgage, yet it is too small an annual payment to be effective 
in reducing the mortgage. 

As a rule, mortgages on good property are easily renewed. To 
pay off this $4000 mortgage in five years would probably require too 
great an outlay, as it would necessitate an additional monthly pay- 
ment of $66.66 for five years, or $800 a year for five years. If, how- 
ever, the owner could pay $400 per year to apply on the mortgage, 
the burden would not be so heavy, as this would only amount to 
$33.33 per month. At the end of the first five-year period $2000 
would be saved, with whatever interest may have been earned on the 
same. A new mortgage could then be taken for $2000 and with the 
$2000 in cash used to pay off the original mortgage. At this rate 
for the first five-year period the owner would pay as rent $63.33, as 
follows : 

Monthly expense, interest and upkeep as stated. . . $30.00 
To apply on $4000.00 mortgage, per month 33.33 

Total monthly expense (or rent) $63.33 

The second five-year period would be figured in the same way at 
$63.33 per month, but now the owner would in effect be paying him- 
self the interest on the $3000 now invested in the house, or $165 in- 
stead of $55 as in the schedule; and at the end of the second five 
years the mortgage would be paid in full. 

With the property now clear from incumbrances, the question 
arises as to the amount an owner should pay to himself as rent. The 
first answer to this question is that an oivner should lay aside as rent, 
each month, the proportionate amount of the yearly expense of up- 



LIVING CONDITIONS— HOME OWNERSHIP 115 

keep j taxes, insurance and interest upon the full amount of his in- 
vestment in the property. 

In this particular illustration, the first set of figures gives $360 
a year, or $30 a month, which is the minimum amount of rent the 
owner should pay himself as rent after the mortgage has been liqui- 
dated. He now has $5000 cash invested in the property instead of 
$1000, as was the case when it was purchased. This money would 
earn interest if placed in a bank or in any other good investment, 
therefore it should earn interest when invested in a home. 

The second answer to this question is that if the property could 
be rented for more than the monthly cost, which in this illustration 
is $30, then the owner should pay himself the actual amount of 
rent that he might secure from some other tenant. 

If the property would rent for $40 a month, that is the amount 
the owner should pay himself out of his wages or salary ; but if he 
cannot afford to do this, he should move into a cheaper habitation 
and rent the other one. This $40 would then represent upkeep, 
taxes, interest upon the actual money invested, and a balance of ten 
dollars a month as net profit on ownership. 

Owning an Apartment Building. — Conditions vary to such 
an extent that it is somewhat difficult to give figures that would 
prove conclusively the value of investments in apartment buildings. 

Some have tried purchasing or building a two-apartment house, 
living in one apartment and renting the other, but it is generally 
understood that there is not sufficient income to be derived from the 
rented apartment to pay the cost of upkeep, interest and taxes for 
the whole investment. 

On the other hand, a three-apartment building is said to be large 
enough to give the owner a home rent free and provide enough to 
pay the expenses of the building, but little if anything would be left 
to apply on the principal. 

An open letter to a Chicago newspaper recently asked for advice 
as to whether it would pay to buy a furnace-heated flat for $18,000, 
the maximum return for rent being $2000. An experienced apart- 
ment house owner answered the question in the negative, stating 
that such an investment could only be justified if the buyer were 
certain of a large increase in the ground value. 

His figures to prove his assertion may be a help in determining 
similar problems. Expenses he gives as follows : 



116 THE BUSINESS OF THE HOUSEHOLD 

ANNUAL EXPENSE FOR A FURNACE-HEATED FLAT COSTING 
$18,000 IN THE CITY OF CHICAGO 

Tawes: 2 per cent, on an assessed valuation of $15,000 $300.00 

Interest: 5 per cent, on a mortgage of $12,000 600.00 

Coal : For hot water and furnace 250.00 

Gas: For halls and basement 25.00 

Water Tax: 40.00 

Janitor: At $10.00 per month 120.00 

Insurance: Fire and glass protection 100.00 

Loss: From vacancies, 10 per cent 180.00 

Repairs: Including decorations 200.00 

Sinking Fund: To reduce mortgage l 1 /^ per cent 180.00 



Total expense per year $1995.00 

Total Income $2,000.00 

Total Expenditures 1,995.00 



Net Return to Owner $ 5.00 

It must be remembered that the owner has $6000 of his own 
money invested; over and above the mortgage, and that the only 
interest he receives for this equity is $5 a year. If nothing was al- 
lowed for a sinking fund, the total expense would be reduced to 
$1815, which would leave a balance of $185 for interest on the $6000 
equity, which would only represent a return of a trifle over 3 per 
cent. 

The only hope the owner could have for a good return upon his 
money would be the possible rise in the value of the ground upon 
which the building stands. Such figures show much justification 
for the prevailing rental (1922.) 

Real Estate Mortgages. — Most mortgages on residences are 
seldom paid off in full by the original owner. Business men con- 
stantly borrow money with which to carry on and expand their busi- 
ness, and it is no disgrace to carry a mortgage on one's home. Often- 
times one can thus invest money safely and at a good profit. If 
money can be borrowed on a piece of property at 5% per cent, and 
that same money be safely invested at 7 or more per cent., then the 
wise thing to do would be to mortgage the property. If a man can 
make 10 per cent, on money, and do it safely, he would be foolish to 
use that money to pay off a mortgage drawing only 5% per cent. 

Forty per cent, of an original building loan, with perfect 
safety may be retained as an incumbrance upon a piece of property. 

One should never mortgage a home to pay outstanding debts or 
for luxuries of any kind. Such money should only be used for 
productive purposes, or to aid in the purchase of the home itself. 

Sinking Fund. — It may be good policy to provide a small 



LIVING CONDITIONS— HOME OWNERSHIP 117 

monthly apportionment from the income as a sinking fund, from 
which to pay off the mortgage. These payments can extend over 
a long period of years, so that the monthly apportionment shall 
not be felt. By the time the purchaser has reached the age of 55 
or 60, paying interest may become a burden and old age should 
not be burdened with a mortgage upon the home. (See Amortiza- 
tion Table, p. 337). 

Cost of Loan. — Eeal estate dealers usually charge a commis- 
sion for making loans. In Cook County, Illinois, the amount of 
commission has been agreed upon by real estate dealers. This 
commission amounts to from one to two and a half per cent, of 
the face of the loan. The commission on a $5,000 loan at 2 1 /2 
per cent, would amount to $125. The interest on the original loan 
then goes to the investor. Other charges in connection with mak- 
ing a real estate loan, consist of the making of an abstract with 
an attorney's opinion as to the title of the property; or in place 
of an abstract a Guarantee Policy or an abstract under the Torrents 
system which guarantees the title to the investor, as explained in 
another chapter. Eecording of the mortgage, releasing of old 
mortgages if any, and the payment of back taxes are all charged 
up to the borrower. 

Farm Homes. — The rural or farm home brings in many con- 
ditions peculiar to itself. Usually the farm is the source of income 
and the family life centers about its possibilities. Each member 
of the family is normally an active factor in getting that income. 

A farm home presupposes a house, not an apartment, but the 
dwelling is not always valued or taxed separately from other build- 
ings. 

The farm house may be owned or rented. It may have no sup- 
plies or convenience, and its rent, insurance, etc., are a small part 
of the farm costs. Therefore, for the farmer's family, the primary 
cost of shelter and its upkeep are comparatively low. Fuel may 
cost only labor, most of the food should be of home production, so 
that these necessities of the budget are not so evidently separate 
as where each of these expenditures means the exchange of money. 

Yet the modern, progressive farmer and his wife should find 
ways of estimating their family's cost of living aside from that of 
the stock or the farm management. 

The house itself demands special conditions which relate them- 
selves to the farm-workers and their work. There should be some 



118 THE BUSINESS OP THE HOUSEHOLD 

place where they can discard overalls and rubber boots, wash and 
prepare for meals, without entering the kitchen. More storage room 
for food supplies may be needed, especially for milk, dairy products 
and the winter vegetables, and such storage must not endanger 
health, nor the quality of the produce. 

The principles of sanitation, of economy, of business finance 
apply as forcibly to the farm home as to the city or town dweller, 
but their application concerns different practical conditions. 

QUESTIONS 

1. What are the principal factors to be considered in choosing a neighbor- 

hood in which to reside? 

2. What are some of the advantages of suburban life? of country life? of 

city life? 

3. Does a house take more work to maintain than an apartment? If so, in 

what way? 

4. What are the advantages, if any, of owning one's own home? 

5. Which do you think the cheaper, owning one's own home or renting? 

Why? 

6. Should an owner living in his own house pay himself rent? If so, why? 

7. What expenses not paid directly by a tenant does an owner have to meet? 

8. What is a real estate mortgage? 

9. What is an "'abstract of title"? 

10. Where do deeds and mortgages have to be recorded, and why are they 

recorded? 

11. When may one be justified in mortgaging a home? 

PROBLEMS AND DEMONSTRATIONS 

1. If your family owns a home, ascertain the amount of taxes on the same. 

2. Ascertain from a real estate dealer what percentage of the value of a 

residence would be considered the basis for a real estate loan ? 

3. Find out how much interest you would have to pay on such a loan? 

4. What commission if any? 

5. What would be the other expenses incidental to the making of such a 

loan? 

6. Mr. Osborn renewed the mortgage of $2500.00 on his house at 5y 2 per 

cent, interest, paying the broker 2% per cent, for making the loan. 
How much did the broker receive? 

7. How much was the yearly interest? 

8. Adding the commission to the interest paid the lender of the principal, 

what did the total annual interest represent? 

9. If living at the county-seat of your county, arrange with some member of 

your class, or with the entire class, to visit the office of the Recorder 
of Deeds, and ask him to explain the duties of his office. 

REFERENCES 
Dimock, J. A., New Business of Farming. Stokes. 
Dodd, H., Healthful Farm House. Whitcomb & Barrows. 
Richards, E. H., Cost of Shelter. John Wiley & Sons. 
Farmers' Bulletin No 889, Backyard Poultry Keeping. U. S. Dept. of 

Agriculture. 
Periodicals— The House Beautiful; House and Garden; Suburban Life. 



CHAPTER XI 
RENT AND WATER SUPPLY 

Rent. — We apply the term " rent " to the money we pay a land- 
lord for the use of his property. In actual practice, however, it 
often has a wider meaning, for the rental of an apartment includes 
janitor service and usually heat. For the man who lives in his own 
home, the term should also be made to cover the amount which he 
could secure from some tenant for the rental of that house. 

Few people who own their own homes figure as a part of the 
cost of living the rental they could secure for the house in which 
they live. In other words, they fail to pay themselves rent. Many 
do> not even allow for the interest on the principal which they have 
invested in their home. This is an economic mistake, as will be 
shown later. 

The subject of rent cannot be intelligently discussed in a general 
way, as the problems involved in the rental of a house are entirely 
different from those pertaining to the rental of a steam-heated 
apartment. Location is another factor to be considered, as con- 
ditions in large cities are different from those that obtain in the 
suburbs, in small towns, or on farms. For such reasons, these 
factors must be considered separately. 

The Apartment. — Apartments are more peculiar to the city 
than elsewhere, although many of the smaller towns now have their 
flats and apartments. Such buildings provide for a varying number 
of suites of rooms, from two to as many as seventy or more, the 
number of apartments representing the number of families 
accommodated. 

Rental of an apartment in the cities is usually based upon the 
room as a unit. Fifteen to twenty dollars per month, per unit or 
room, is now the standard price for apartment rentals. A four- 
room apartment, for instance, would probably cost not less than 
sixty dollars a month. Sun-porches, sleeping-porches, bath-rooms, 
entries or reception halls, and closets are not counted as units. 
Recently, landlords have been increasing the rentals of new apart- 
ments, two and three-room apartments in desirable neighborhoods 
bringing as much as seventy-five per month. 



120 THE BUSINESS OF THE HOUSEHOLD 

In cities in which elevator service is more or less common, the 
rental for elevator apartments is higher than for apartments with- 
out that service. For example, minimum figures in New York in 
the University district, have been $7 to $8 and up, per room, in 
non-elevator apartments, and $10 to $12 and up in those buildings 
having elevators (1916), but prices have recently become twice 
these amounts. 

Aside from a fixed standard of measurement for estimating 
rent, landlords take into consideration the desirability of the neigh- 
borhood, the age and the condition of the building. Especially 
desirable or fashionable neighborhoods, and new buildings, usually 
increase the minimum standard of rentals from five to fifteen dollars 
or even more per month. On the other hand, if a neighborhood has 
deteriorated, or if a building is old and run down, rents are usually 
lowered. 

The demand in cities seems to be for small apartments of from 
three to five rooms, and recently a great demand has come for one- 
and two-room apartments. Owing to this demand, the rental asked 
for these smaller apartments is often higher per room than that 
asked for the larger flats. 

Families with young children should generally choose a house. 
Children should have more freedom than is feasible in an apart- 
ment. The high cost of living is causing many apartment dwellers 
to economize by moving into smaller apartments. Many single men 
and women prefer to maintain a small apartment rather than to rent 
a single room in a boarding-house. Again, children leaving home 
frequently leave the parents alone, and the small, heated apartment 
becomes ideal for the " old folks." These conditions have brought 
the demand for the one-, two-, three-, and four-room apartments. 
These small flats make light-housekeeping possible ; in fact, in most 
of them kitchen facilities are provided, beside a bathroom. 

Bents vary in different cities. In New York City they are 
much higher than in Chicago, while in Philadelphia they are lower 
than in Chicago. Again, in University towns rentals are usually 
high, as they are in the better city suburbs. Local attractions, 
congestion and the rapid growth of cities all add to the rent-roll 
of the landlord. Transportation is another factor that affects rent. 

Small vs. Large Apartments. — A two- or a three- or even a 
six-apartment building has some of the advantages of a small com- 
munity. Interchange of social life among tenants is more possible 






RENT AND WATER SUPPLY 121 



and more of the home atmosphere is retained than in a large build- 
ing, in which are housed thirty or more families. 

Better janitor service is generally obtained in the larger build- 
ings, as one or more capable janitors and perhaps an experienced 
engineer are constantly in service. Heat in such buildings is usually 
furnished all night during cold weather. The smaller buildings are 
usually cared for by janitors who attend other buildings. 

Most tenants dislike to live in apartment houses, if the owner 
also resides in -the same building. They feel that being on the 
ground at all times, the owner or his family may have a tendency 
to criticise, or to form cliques among IJie tenants and that oppor- 
tunities for disputes with the owner will be more frequent than if 
he resides elsewhere. 

What Apartment Rent Includes. — People living in houses 
often gasp at the thought of forty, sixty, and seventy dollars rental 
for an apartment; but they do not consider that in paying rent 
for an apartment, one does not pay for shelter alone, as rent in- 
cludes a number of items not included in the rental of a house. 
Following are some of the items furnished without separate charges 
with the rental of many high-class apartments : 

1. Fuel and heat. 6. Vacuum cleaner. 

2. Janitor service. 7. Ice. 

3. Hot- water. 8. Electricity. 

4. Ice-box. 9. Water-tax. 

5. Gas-stove. 10. Machine ironers and clothes driers. 

Numbers six, seven, eight and ten are sometimes furnished to 
the tenants, but the other six items are always furnished in steam- 
heated apartments. To the value of these items must be added 
the lessened cost for upkeep and for help in doing household work 
when compared with the rental of a house. If the separate cost of 
these items were deducted from the rental of the apartment, the 
comparison would not be in favor of the house. 

What House Rent Includes. — The rental of a house, as a rule, 
does not include any of the foregoing items. In the rented house, 
the tenant usually must pay the water-tax, which would seldom 
be less than a dollar a month. Fuel of course must be purchased 
bv the tenant, and seas, electricity and ice are never furnished free. 

v 7 O 7 «/ 



122 THE BUSINESS OF THE HOUSEHOLD 

The care of the furnace, the lawn and the upkeep of the prem- 
ises, the emptying of ashes and the cleaning of walks in winter must 
all be done at the expense of the tenant, which would represent 
janitor service, if it were hired. A house-janitor usually arranges 
to care for several houses in a neighborhood, charging from $3 to $5 
per month for each furnace according to the extra work required of 
him, other than the caring for the furnace. 

The work within the house is much more than what would be 
required in an apartment. If a maid is necessary to help with 
the housework in the rented house, her services may usually be 
dispensed with in an apartment. 

Following are the actual figures showing the cost of living in a 
certain ten-room house in a first-class Chicago suburb (1916): 

Rental per month $95.00 

Fuel, average per month for 12 months 15.00 

Janitor service per month for 12 months 3.00 

Hot-water heat (gas) per month 3.00 

Water-tax per month 1.50 



Total per month $117.50 

Here is an average fixed monthly expenditure that cannot be 
avoided. The janitor was paid $6 per month for six months, or an 
average of $3 per month for twelve months. The fuel bill as shown 
has been distributed over the entire year in order to estimate the 
monthly average expense. The janitor service does not include the 
care of the lawn in summer, care of garden or the cleaning of walks 
in winter. Such expenditures should be added to the total given 
for the month. 

Here again, we have the question of environment to consider. 
In this particular suburb, carfare to the city is ten cents, instead 
of five as within the city limits. Gas is about a dollar per month 
higher, and so is electricity and telephone service, over and above 
the city rates. If we add these items to the monthly expense 
given we will have the following (1916) : 



Total rental as estimated in the foregoing tabulation. 

Extra work about the household ( charwoman ) 

Mowing lawn and cleaning walks average per month. . 
Excess gas rate of suburb over city rate per month . . 
Excess electricity of suburb over city rate per month . 
Excess telephone of suburb over city rate per month . . 
Excess carfare from suburb over city rate per month 



$117.50 
8.00 
1.50 
1.00 
1.00 
1.00 
3.00 



Total rent for the month $133.00 



RENT AND WATER SUPPLY 123 

In some suburban towns, as the one referred to in this table, 
public service utilities are provided by smaller companies than those 
in the larger near-by cities and the cost of manufacturing gas and 
electricity is greater, hence the excess cost shown in the table. 

Toll calls to the city account for the excess telephone rates. 

In this particular case the tenant is the owner of the house. 
The property is worth between fourteen and fifteen thousand dol- 
lars. When the owner rented the place he received $95 a month 
rent for it, which of course would more than take care of interest 
and taxes. Now he must either pay himself the $95 rental or charge 
himself with the taxes and interest upon the money invested. 

One seems to expect more room in a house than in an apart- 
ment. Few people living in a ten-room house would expect to rent 
a ten-room apartment. An eight-room apartment probably will 
serve the needs of a family accustomed to a ten-room house. The 
rent of an eight-room apartment in a large city amounts to from 
eighty to one hundred dollars a month. This shows considerable 
saving over either of the total figures given for the house rental. 
Houses and apartments can, of course, be secured for very much 
less money than the foregoing, but the illustrations given are for 
modern, high-class houses and apartments in desirable neighbor- 
hoods. In conclusion, one's needs can usually be met in a smaller 
apartment than in a house, and at a total saving of from fifteen to 
forty dollars a month. 

The disadvantages of apartments particularly as regards re- 
stricted opportunities for children must not be lost sight of, while 
recognizing the conveniences they afford for the housewife and the 
saving in service. 

Transportation. — There are often several factors that add to 
one's rent that are not included in the money paid the landlord. 
One of these factors consists of expenditures for transportation. 
Many economists agree that this expense should be charged under 
" rent." This is especially true, if suitable living quarters may be 
obtained in a section in which transportation is not necessary to and 
from work, school, church, and markets, but for various reasons 
beneficial to the family one prefers a location further from the heart 
of the city. Transportation then, in such cases, simply means that 
much more added to the rent. 

Other Items That Add to the Rent. — Many are delighted 
to find that perhaps in a choice location rents may be almost as 



124 THE BUSINESS OF THE HOUSEHOLD 

reasonable as they are in less desirable neighborhoods. This is 
sometimes true, but it must not be overlooked that in many of these 
desirable neighborhoods, all foodstuffs are generally priced much 
higher than they are in other quarters of a city. This adds to the 
cost of living and indirectly it means that one is paying just that 
much more for rent. 

Another factor under such conditions is the fact that children 
and other members of the family feel compelled to dress better than 
they would in more humble surroundings. This item alone makes 
no inconsiderable addition to the rent. 

Moving and Storage. — Many city people form the habit of mov- 
ing every year or two. Although in some cities the charge for mov- 
ing is regulated by the city council at so much per hour, twenty-five 
dollars is about the minimum charged for moving the average family. 
Those who move, do not generally think of adding this expense to 
their rent as they should do. 

In moving, there is more or less wear and tear upon the furniture 
besides actual breakage. New quarters usually mean an additional 
rug or two ; new curtains, and other furnishings, as many of these 
things that may be on hand do not fit the new home, especially 
in moving from a house to an apartment or an apartment to a house. 
These incidental expenses of moving, added to the direct moving 
expense, may equal a month's rent. Extra labor required is another 
factor to be considered. Suppose a family paying a rental of 
fifty dollars per month, decides to move to an apartment costing 
forty-five dollars per month. The difference amounts to sixty dol- 
lars a year. The direct cost of moving would not be less than thirty 
dollars. Deduct from the remaining thirty the extra expense for 
new fittings and furnishing, the wear and tear upon furniture 
and the outlay for labor, and little if anything will be left that can 
be counted as a saving, unless the family remain at the new location 
for a term of years. Such a move for only one year must be justified 
upon some other ground than dollars and cents. 

If one moves from a large to a small apartment, there is likely 
to be excess furniture that cannot be used or stored in the new 
apartment. If this furniture be placed in a warehouse there is a 
monthly expense of anywhere from two dollars up. This also must 
be assessed against one's apportionment for rent. If sold, the 
return is pitiably small. 

The above are a few of the factors generally ignored by people 



RENT AND WATER SUPPLY 125 

in considering the matter of shelter, but they exist and are a 
charge or a tax upon one's income. As they must be paid for, the 
only proper place to apportion such expenditures is against " Rent." 

What a Lease Means. — A lease is a contract for the letting 
of a piece of property by its owner, who is called the lessor, to a 
tenant or renter, known as the lessee, for a specific period of time, 
in consideration of a stipulated rental, usually payable in monthly 
instalments, and in advance. 

Legally, the owner of a piece of land is generally the owner of 
any building or structure upon it, although the ground rent system 
is found in some communities. Real estate mortgages are incum- 
brances upon buildings because they have been erected upon or are 
standing upon the land mortgaged. In other words, a house or build- 
ing is personal property and not real estate, except in its relation 
to the land upon which it stands. 

In leasing a house, the owner leases the lot upon which the 
house stands and the renter is of course entitled to the use of that 
lot during the term of the lease. On the other hand, if a barn, a 
garage, or other outbuilding in no way a part of the house, stands 
on the lot, or there be room for a garden, the lease of the house 
does not necessarily include the lease of such other buildings, or 
the garden plot, unless specifically included in the lease. 

Should a tenant erect upon such a lot a garage, a barn or any 
other building, it would legally become the property of the owner 
or lessor at the termination of the lease, and the lessee would have no 
right to move it from the lot, to sell or to rent it without the 
written permission of the owner of the lot. It has virtually become 
a part of the lot. For this reason, tenants should never erect any 
expensive structure upon rented property, without the written con- 
sent of the owner and his permission to remove it at the expiration 
of the lease. 

The same principle applies to the attachment of expensive 
apparatus to the house itself, such as a gas range or an automatic 
gas-heater or hot-water heater. Globes and bowls attached to gas 
fixtures if furnished by the tenant may be removed by the tenant, 
but if the tenant attaches new gas or electric fixtures, they become 
a permanent part of the house, and may not be removed at the 
expiration of the lease without the consent of the lessor. 

Termination of a Lease. — In some places the law requires 
that a tenant give a landlord a written notice that he intends to 



126 THE BUSINESS OF THE HOUSEHOLD 

move at the expiration of the lease. In Chicago a tenant whose 
lease expires May first must send a written notice of his intention to 
move May first, not later than the previous first day of March. 
If this is not done, the landlord may, if he chooses, hold the tenant 
to the payment of another year's rent, whether the tenant moves or 
not. This clause in leases may not be taken advantage of often by 
landlords, but tenants should know that if a landlord chooses to take 
advantage of one's negligence in this respect, the law will uphold 
him. Those who lease property should inform themselves as to the 
law governing leases in the state in which they live. 

General Provisions of the Lease. — A lease is a contract, and 
violation of any of the terms of a lease, either by the landlord or 
tha tenant, makes action in court possible, as would the breach of any 
contract. 

The conditions and terms of printed leases originate with 
owners oi real estate and landlords, so that it is natural to expect 
that all of the interests of the owners or lessors have been covered 
by these printed forms, which are so carelessly and thoughtlessly 
signed by tenants. Very few provisions in the interest of tenants 
are expressed in any of these printed forms. The tenant by his 
signature binds himself to the articles that make up the lease, thus 
protecting the lessor, or owner; while as a rule the tenant must 
look to the courts to protect himself against many contingencies 
not mentioned in the lease. 

In apartment leases the clause covering the heating should be 
noted carefully. Some leases do not include a heating clause, or 
if it does, the landlord or lessor may agree to furnish heat from 
October first to May first, and yet climatic conditions often exist, 
either before October first or after May first, that would make an 
unheated apartment untenable, especially if sickness existed in the 
family. While the law of a state undoubtedly would protect a 
tenant if the landlord refused to grant heat under such conditions, 
and the tenant moved as a consequence ; yet it would only be as a 
result of a defense offered by the tenant in court. 

A landlord can be held only by the provisions mentioned in the 
lease, unless by his own act or negligence in relation to the mainten- 
ance of the premises he consistently violates the law by making 
the property untenable, dangerous to public health, to morals or to 
safety. 

Failure to pay the rent due, usually makes the tenant liable 



RENT AND WATER SUPPLY 127 

to ejection according to due process of law. While a tenant has 
many rights under the law, they are seldom mentioned in a lease 
as a part of the contract. As a consequence, the tenant must fight 
for such rights in court if a landlord refuses to grant them. 

A tenant cannot move from a piece of property he has rented 
and by so doing end his liability to the landlord under the lease, 
before the expiration of the lease. The tenant may be held legally 
for the balance of the rent during the unexpired portion of the 
lease, even if the tenant does not occupy the property. 

Some leases specifically forbid subleasing by the tenant to a 
second party before the expiration of the original lease. If a tenant 
desires to sublease he should secure the written permission of the 
lessor, but unless the original lease is surrendered to the original 
tenant, he will continue to be held for the rent of the sub-tenant 
until the expiration of the lease. 

Tenants are responsible to the lessor for damage done to the 
property leased during the occupancy of the premises, unless such 
damage was unavoidable or the result of a so-called " act of God," 
such as fire from lightning, or damage from a wind-storm. 

The terms of every lease should be read carefully before the 
tenant affixes his signature, and if specific terms are agreed upon 
by both parties, they must be written into the lease before it is 
signed in order to make them binding. Both lessor and lessee sign 
the lease in duplicate, a copy being kept by each party. 

Before attempting to break a lease, or move from a leased 
house or apartment, a tenant will save much trouble and expense 
by first consulting an attorney. Under the terms of almost any 
lease the odds are in favor of the lessor or owner, while the tenant's 
rights are generally represented by the laws of the state, and to 
secure those rights, court action is necessary. One cannot be too 
careful about signing leases without being familiar with their pro- 
visions; but once signed, do not attempt to evade any of the 
terms of a leasJe without the advice of a competent and honest 
attorney. 

Term of Leases. — Leases in cities usually expire the first day 
of May and the first day of October. This condition works a hard- 
ship upon the landlords and it is inimical to the best interests of the 
people at large. There is a strong tendency among real estate 
dealers to break this ironclad expiration feature of leases, making 
it possible to have leases expiring in any month of the year. In 



128 THE BUSINESS OF THE HOUSEHOLD 

some cities monthly rentals obtain for cheaper apartments or flats, 
and yearly leases for the more expensive. 

Fixed periods of expiration of leases assist perhaps in making 
most city dwellers become migratory citizens. At any rate, apart- 
ment families are more restless than those living in houses. New 
apartments with all the late improvements are a great inducement 
to move from an older apartment, and often times more money is 
spent for rent than would be the case if the family were moving 
into a less modern building. This increase in the rent with the 
added moving expenses cannot always be afforded. The greatdemand 
for new apartments forces down the rental of the older apartments 
and decreases their value. Constant moving prevents a family from 
either acquiring or from maintaining the sense of home. For this 
reason apartment-living has robbed many families of the home-like 
atmosphere every family should enjoy. If a family would remain 
for a number of years in the same building, and if the landlord 
would do his part in promoting permanency in leasing, the migra- 
tory flat-dweller might regain his lost sense of home, and the family 
once more might take its place in the neighborhood community life. 
At present community interests are little developed in the apartment 
districts of large cities. 

The expiration of leases occurring only once o^ twice a year 
means that if a building is not rented by the first of May or Oc- 
tober, it is apt to remain unoccupied until the next expiration 
period. There is no doubt but that this system, together with the 
migratory habit, works an economic harm to both landlord and 
tenant, and social harm as well. These questions deserve the ear- 
nest attention of legislators and civic workers. 

Investigations to be Made Before Buying or Renting. — 
Frequently one selects an apartment or a house without thoroughly 
examining all of its appurtenances, its possibilities and its handi- 
caps. None but a trained observer can go through a place and at the 
first, or even after the second visit, catalogue all of its vital points 
and all of its deficiencies. For this reason, one should make a list 
of all that may be desired in a model house or apartment, and in 
looking over property, these items should be checked from the list, 
or properly marked, as existent or non-existent. 

Such a list is appended herewith as a suggestion. Doubtless, 
other factors might be added. 



RENT AND WATER SUPPLY 129 

LOCATION AND EXTERIOR 
These are the first points to be decided upon: 
Location : 

1. Character of neighborhood. 

2. Convenience to markets. 

3. Distance from schools. 

4. Distance from churches. 

5. Convenience of transportation. 

6. Probable development of neighborhood. 

7. Proximity to transportation, coal yards, factories, etc. 

8. Prevailing winds; nearness to still water that may furnish 

mosquitoes. 

9. Is there a generous and safe water supply with sufficient 

pressure ? 
Exterior: 

1. How many exposures? 

2. Are any rooms deprived of sunlight; of sufficient air? 

3. Do any rooms open on courts ? 

4. Which exposure does the house face? 

5. Is there a front porch; a sun porch; a sleeping porch? 

6. Are there screens and blinds? 

7. Are there storm windows and doors? 

8. Does the exterior need painting? 

9. Does it need repairs? 

10. If fenced, is the fence in good repair? If steps, are they 

strong ? 

11. Is there a front yard? a back yard? 

12. Is there sufficient space to dry clothes ? 

13. Is there space for children to play? 

14. If a house, where and in what condition is the cesspool, if 

any? 

15. Are there good cellar windows? 

16. Does the ground slope away from the foundation? 

17. Is there a sill-cock for hose? 

18. Are the window panes whole and secure? 

19. Are the chimneys in good condition? 

20. Examine the roof and gutters. 

Kitchen: INTERIOR 

1. Is it too large or too small? 

2. What about air and light? 
9 



130 THE BUSINESS OF THE HOUSEHOLD 

3. What is its exposure? 

4. Is the pantry a long distance from the dining-room ? 

5. Has pantry an outside vent or window? 

6. Is ice-box in pantry or kitchen? 

7. Must the iceman cross kitchen to reach pantry ? 

8. Is there an outside entrance to ice-box ? 

9. Are there any package receptacles opening on outside? 

10. Is there an incinerator for garbage in basement ? 

11. Is there any kind of a garbage vent in floor or wall ? 

12. Is there a laundry chute? 

13. Is there a sliding opening or window between pantry and 

kitchen ? 

14. Between pantry and dining-room, or 

15. Between kitchen and dining-room? 
1G. Is the sink low or high? 

17. Has the sink two drain boards? 

18. If not, is the drain board on the left side of sink? 

19. Is there sufficient room between sink and stove? 

20. Is there space for a kitchen table and chair ? 

21. How many steps from stove to sink, sink to table, table to 

stove, table to pantry, dining-room to refrigerator or to 
cellar door? 

22. What is the character of the floor? Is it rough? with 

cracks ? 

23. Must it be covered with linoleum? 

24. What kind of a range is in the kitchen ? Are all flues clean ? 

25. Is it in good repair? 

26. If needed, is there a good zinc under the range? 

27. Is the hot-water boiler jacketed? 

28. Is kitchen equipped with both gas and electricity? 

29. Has pantry a separate light? 

30. Is there a butler's sink ? in good condition ? 

31. Is there a place for a flour barrel? 

32. Is there a good kitchen porch or wide step ? 

33. Has it a separate light? 

34. Are there any closets off kitchen? 

35. Is there a well-situated and ventilated toilet? 
Cellar: 

1. Is there a good well-lighted storeroom ? 

2. Is there a vegetable and a fruit room ? 



RENT AND WATER SUPPLY 131 

3. If not, is temperature of cellar or store room suitable for 

fruit and vegetables? 

4. If a house, is there an entrance to kitchen from cellar? to 

cellar from yard ? 

5. If a house, what kind of a furnace is there? 

6. What provision is there for hot-water ? 

7. Must fuel and ashes be carried in and out through the cellar 

door? 

8. Are there bins for heating- and cooking-fuel ? 

9. Can cellar windows be opened ? Are they securely screened ? 

10. If maid's toilet, is it in good condition and ventilated out- 

of-doors ? 

11. Is the floor in good condition? 

12. Are the stairs safe? 
Bedrooms: 

1. Notice the exposure of each. 

2. What about light and air? Are there two windows giving 

cross-ventilation ? 

3. Note size of each room. 

4. Will they hold necessary furniture and allow doors to swing ? 

5. Is there room for bed without placing it across a window? 

6. Has space been left for a dresser? 

7. For a chiffonier? 

8. Are there lights over both ? 

9. Are there any mirror doors? 

10. Is there sufficient closet space? 

11. Are closets lighted? 

12. Is there a window in closets? 

13. Are there sufficient shelving and hooks in closets? 

14. What is the condition of floors, of walls and ceiling ? 

15. Is there sufficient radiation for heat? 

16. Will your rugs fit the rooms? 
Dining-room: 

1. What is the exposure? 

2. Is there a built-in sideboard? 

3. Will it interfere with your furniture? 

4. Are there any side lights? A center light? 

5. How many windows? 

6. Is there a porch off dining-room? 

7. Is door between dining-room and k.Hchen or pantry a swing- 

ing one? 



132 THE BUSINESS OF THE HOUSEHOLD 

8. Is there a butler's or serving pantry off kitchen ? 

9. Will the room hold your furniture and allow passage around 

the table? 

10. Will your rug fit the room ? 

11. What connection has the room with other rooms? 

12. May it be closed off from them by folding doors ? 

Living-room : 

1. Note the size in regard to rugs and furniture. 

2. Is there a gas log? 

3. A wood and coal grate? 

4. If so, is opening into chimney large enough ? 

5. What is the exposure? 

6. How many windows? 

7. Are there side lighting fixtures, center fixtures? 

8. Is it equipped with both gas and electricity ? 

9. If there is a sun-parlor, are there separating doors? 
10. Is there good space and light for a piano ? a desk ? 

Bath-rooms and Toilets: 

1. Is the plumbing modern? It may well be tested. 

2. Note the condition and character of tubs. 

3. Is furniture in bath-rooms well arranged? 

4. Are toilets in good condition? 

5. Are there medicine closets in bath-rooms? Towel storage? 

6. Do any of them connect with more than one bedroom? 

7. Is there a maid's bath-room? 

8. Is there a lavatory and toilet on main floor? 

9. Are there toilet facilities in basement? 

Laundry: 

1. Does the laundry have three tubs ? Are they high enough ? 

2. Is there proper light at tubs ? 

3. Is there electric light and power outlets? Are these at safe 

distances from the tubs? 

4. Is there a dry room ? 

5. Is there room for washing machines, machine ironers, etc. ? 

6. Is the floor cement or wood? 

7. Are there hooks on walls ? 

8. Is there a laundry stove, or a place for one? 

9. How is the drying-yard or roof reached ? 



RENT AND WATER SUPPLY 133 

Halls: 

1. Note size in relation to rugs or carpeting. 

2. Is there a clothes' closet in front hall ? 

3. Is there a linen closet in upstairs hall? (If house). 

4. How is it lighted ? 

5. Note position of stairs, if any, to hall ? 

6. Is there a vestibule between front hall and porch ? 

7. Are there radiators in halls ? 

Other rooms: 

1. Note all other rooms for size, exposure, light, etc. 

2. In what way may they be used ? 

3. Will they require new furniture ? 

In General: 

1. What is condition of shades in all rooms? 

2. Will new curtains be required? 

3. Will any new furnishings be necessary? 

4. Are there any awnings needed or furnished? 

5. What system of heating is used ? Hot air, hot water, steam, 

or combination ? 

6. Note carefully the radiators in each room, and see if they 

have enough radiating surface. The registers — have they 
screens ? 

7. What is the reputation of janitor for service (if apartment) ? 

Does the landlord live in the building, if an apartment ? 
What do other tenants say of him? 

8. Ascertain from other tenants, if any, whether building is 

kept properly warm during cold seasons. 

9. What is the period for which the landlord agrees to keep the 

apartment heated, according to terms of lease? 

10. Is hot water furnished the year around? 

11. If a house, have it understood who is to pay water-tax. 

12. See that any special agreements are written into the lease. 

13. See that all repairs and decorating agreed upon are made 

if possible before moving in, or before paying a full 
month's rent in advance. 

14. If the place in view is rented, will any furniture have to be 

stored ? 

15. Is there an attic (if a house) ? 

16. Are there windows in the attic, if any? 

10 



134 THE BUSINESS OF THE HOUSEHOLD 

17. Are all ceilings in good condition, do floors or walls need 

refinishing, window sashes repaired, etc.? 

18. Do doors shut properly ? 

19. Are all window cords in good condition? 

20. Are gas burners, tips, keys, globes, or other lighting fixtures 

present and in order? 

21. Are all faucets in proper condition? 



WATER SUPPLY 

The water supply of the home is a fundamental factor in health 
and economy. It may be obtained from a local source as on many 
farms, where it comes under individual control, or it may be a 
public supply. No home should be located without full knowledge 
of the possibilities of the water supply. 

Whatever the source, the supply should be generous and safe; 
that is, free from any pollution that will endanger health. 

With the local supply the cost may be only intelligent protection 
and use; with the public supply there will be a special charge 
known as the water-tax and reckoned in different ways at different 
rates. 

In apartments the water-tax is usually paid by the landlord and 
so appears as " Kent " ; with a rented house it may or may not be 
so included. Every tenant should know what his contract includes. 

Water-Meters. — In some places water is sold by the city and 
charged according to the number of faucets or outlets in the build- 
ings or on the grounds; or by a lump sum estimated on the value 
of the house. In other places the consumption of water is measured 
by a meter in terms of cubic feet the same as gas. Although meas- 
ured in cubic feet, the amount consumed is expressed on the custo- 
mer's bill in terms of gallons, 1 cu. ft. equalling 7% gals. 

The meter shows on one dial the exact number of cubic feet used 
and in this respect it differs from the electric and gas meters. 

There is a great wastage of water in many houses. If meter 
service is installed, waste is apt to be remedied because the bill is 
large; but in every case waste should be eliminated both for 
principle's sake and that a " water-famine " may be so much the 
less possible. 

In the farm-home the waste is more often in the form of human 
energy and this should not be allowed. Simple and inexpensive 



RENT AND WATER SUPPLY 135 

methods may be used to bring running water into a kitchen, to sup- 
ply a bathroom and to be available in case of fire. 

The farmhouse should certainly be as conveniently supplied as 
the farm barn. 

Many a body of water in the country districts might be safe- 
guarded and piped for a community supply with small expense, if 
the public spirit of that community realized the importance of the 
water-supply both for health and economy. 

The importance of the water-supply emphasizes the proper dis- 
posal of it after it has served its purposes, therefore health and 
economy also require a safe and convenient plan for sewage disposal. 

QUESTIONS 

1. What expenses aside from rent would the tenant of a house have to pay 

for its upkeep? 

2. What benefits does a tenant of an apartment which is steam-heated re- 

ceive which are not obtained by the tenant of a house? 

3. What are the arguments in favor of living in apartments? in a house? 

4. How is the cost of water calculated? 

5. What factors contribute to high rentals ? 

6. In what way may transportation prove a factor in adding to rent? 

7. What is a lease? 

8. May a tenant move before the expiration of a lease without further 

obligation to the landlord? 

9. If a tenant builds a barn upon a rented lot may he remove it from the 

lot at the expiration of the lease without the consent of the lessor? 

10. Who is the lessor and the lessee? 

11. Upon what basis are rentals of apartments fixed? 

12. Would an average American family be justified in moving to the poorer 

parts of a large city in order to reduce the cost of living? 

13. Does suburban life add to or lessen living expenses? Why? 

14. If you lived on a farm, what living expenses would be greatly changed 

from the city home ? 

PROBLEMS AND DEMONSTRATIONS 

1. Ascertain what rent is charged in your own town or city for a four, five, 

six and seven room, steam-heated apartment. 

2. Ascertain the same in unheated apartments, if there are any. 
3* Ascertain the rent for a five, six or eight room house. 

4. Ascertain, if you do not know, how much rent is being paid by your 

family/ and then see if better quarters could not be obtained for the 
same or less amount in as good an environment; how much per room is 
your apartment or house costing you in rent; what per cent, of your 
income does your rent amount to? Is it too much or not sufficient? 

5. Find out from a real estate dealer just what are the rights and the 

obligations of a tenant under a lease. Secure a blank lease and explain 
its principal parts. 



136 THE BUSINESS OF THE HOUSEHOLD 

6. The Smith family lived in a house of six rooms for which they paid $35.00 

rent per month; $1.50 water tax per month; and $15.00 per month 
for coal for six months of the year. What price could they afford to 
pay for a steam-heated flat? Could the Smith family save anything 
by moving into a steam-heated flat, and if so, how much? What per 
cent, would the saving represent over and above the cost of living in 
their house? 

7. In your community or state, is it necessary to give a landlord a written 

notice that the tenant expects to vacate the rented premises at the 
expiration of the lease? If so, how long before the expiration of the 
lease must the notice be sent? If such notice is! required and not 
sent, in what way may the landlord hold the tenant responsible? 

8. Mr. Jones rents an apartment for one year at $50,00 per month and the 

landlord agrees to give Mr. Jones a concession of one month's free rent. 
How much per month does Mr. Jones pay for rent? 

9. The landlord offered Mr. Jones a concession of two months' free rent at 

the same price for a two year lease, or a monthly rental of $47.00 on 
a three year lease. Which was the better proposition in actual dollars 
and cents ? 
10. How is the water-tax on your home estimated? 

REFERENCES 

Clark, W. E., The Cost of Living. A. C. McClurg & Co. 

Cromwell, J. H., The American Business Woman. G. P. Putnam's Sons. 

Dodd, H., The Healthful Farmhouse. Whitcomb & Barrows. 

Gerhard, W. P., House Drainage and Sanitary Plumbing. D. Van 

Nostrand Co. 
Goodnow and Adams, The Honest House. The Century Co. 
Lynde, C. J., Home Water Works. Sturgis & Walton. 
Osborn, C. F., The Family House. The Penn Publishing Co. 
Richards, E. H ., The Cost of Shelter. J. Wiley & Sons. 
Veiller, L., A Model Housing Law. Russell Sage Foundation. 
The Publications of the National Housing Association, 105 E. 22nd 

St., New York City. (5c. to 10c. each.) 
Farmers' Bulletin No. 927 — Farm Home Conveniences. U. S. Dept. of 

Agriculture. 
Farmers' Bulletin No. 904 — Fire Prevention and Fire Fighting on 

the Farm. U. S. Dept. of Agriculture. 
Farmers' Bulletin No. 270 — Modern Conveniences for Farm Home. U. 

S. Dept. of Agriculture. 



CHAPTER XII 

FUEL 

The subject of fuel for heating and lighting a house and for 
cooking the food deserves careful consideration by all interested 
in reducing the cost of living. 

HEATING 

There are four principal methods of heating a house. The sim- 
plest form consists of a stove. The hot-air furnace is the first 
improvement over the stove. We also have the hot-water and the 
steam-heating systems. Besides these there are combinations of 
two or more, as warm air with hot water or steam. All but stoves 
illustrate a central heating system, by which both the labor of care 
and the dirt are outside of the rooms and centralized. Fireplaces 
may be used alone or in connection with any system. 

Stoves. — While it is possible to heat a house healthfully by 
stoves, if intelligently managed, they are usually wasteful and 
unsatisfactory. It is hard to heat more than one or two rooms with 
one stove. Much labor is entailed in running stoves, and household 
furnishings suffer from dust, ashes and smoke, while, with coal fuel 
there is a real danger from escaping gas. The heat is seldom effec- 
tive throughout the room, and through lack of constant attention 
which any stove demands the heat is too uneven for health, although 
self -feeding stoves have done much to eliminate this objection. 

Furnaces. — Furnace or warm-air heating means the heating of a 
house by fresh cold air which is brought into an enclosed space 
about the fire-box. This heated air is then distributed through 
large pipes to the different rooms, through outlets or " registers " in 
the floors or base-boards. 

Some of the objections to this method of heating are the 
following : 

1. It is more or less difficult to equalize the intake of cold air, 
especially during a high wind. 

2. It is difficult during gales to heat exposed rooms, as the hot 
air must be forced up from the furnace, through long stretches of 
pipe, against the wind. 

137 



138 THE BUSINESS OF THE HOUSEHOLD 

3. If ashes are being emptied in the cellar, they often enter the 
living rooms through cracks in the floor or around the registers. The 
hot air sometimes carries with it coal gas or smoke which gain access 
to the air chamber. Careful management will eliminate these 
objections. 

4. Furnace heat is not constant, but varies with the fire. If 
the fire dies down, the heat rapidly diminishes, as with a stove. 
This is not so quickly evident with hot-water heating. 

5. Unless well-managed, the air is overheated, which means 
insufficient moisture and consequent ill effects on all living things 
and on furnishings. 

The principal factor in favor of the furnace is its low cost of 
installation as compared with other systems, but the disadvantages 
in its operation far offset this initial advantage. 

Steam. — Steam-heating is generally found in apartment build- 
ings and large houses. This system consists of the generation of 
steam in a boiler, the steam being transmitted through pipes into 
radiators. Some of the disadvantages of this system consist of the 
following : 

1. Original cost of installation. 

2. Eequires more than ordinary skill to operate. 

3. It is hard to regulate the temperature of rooms without the 
aid of a thermostat. Booms become either overheated or under- 
heated. 

4. The escape of steam from radiator valves settles upon dusty 
surfaces and begrimes walls and draperies. 

5. Some escape of steam is required to properly humidify the air. 
Steam-heat proves to be a very dry heat. 

6. If the fire dies down, as at night, or goes out in the heater, 
steam is not generated, the rooms become cold, and it takes consider- 
able time to get up steam again. The same type of objection may 
also be charged against the hot-air furnace, although heat may be 
obtained much quicker with a hot-air furnace than with steam. 

Hot-water Heating. — Hot-water heating is by all means the 
most satisfactory method of heating. The whole system of pipes 
and radiators is filled with water. In the heater this is held in 
hollow sections or coils in contact with the fire. As this water 
becomes hot, circulation starts and continues throughout the house. 

One of the great advantages of this method of heating is that 
when the water is once thoroughly heated, the house will remain 



FUEL 139 

warm for hours even after the fire has gone out. Less fuel is 
needed and the heat is more constant and even than with other 
systems, and is more easily regulated. 

In exposed positions there is a possible danger from the freezing 
of the water in the radiators. If a house equipped with a hot-water 
or steam system of heating is to be closed during cold weather, the 
water supply must be turned off and the entire system drained, else 
pipes and radiators may freeze and burst. 

Size of Radiators. — With either steam- or hot-water heating 
it is vitally necessary that each room have sufficient radiation; 
that is, radiators must be large enough for the rooms to be heated. 
Steam-fitters have worked out a definite relationship between the 
exposure, window area and size of a room and the- number of feet 
of radiator surface necessary to heat it. Generally, with steam, 
radiators may be smaller than with hot-water. 

Humidification. — u Dry air " takes moisture from the skin, the 
lining membranes of the body, and injures house furnishings. If 
there is sufficient moisture in the atmosphere, a room is easily 
heated. Therefore it may be necessary to provide additional mois- 
ture in all heated rooms. Patent humidifiers in the form of zinc 
receptacles for the top, or to hang on the back of radiators, are 
on the market. These receptacles are filled with water, the evapora- 
tion of which supplies the necessary moisture for the atmosphere. 
Any receptacle, if large enough, kept supplied with water, placed 
upon stoves, registers or radiators, will serve the purpose. Area and 
not depth is desirable for proper evaporation. 

Ventilation. — A room cannot be heated without the circulation 
of air. " Dead air " or still air does not circulate ; therefore more 
fuel is burned to heat an unventilated room than one that is 
properly ventilated. 

A little fire in a fireplace provides the best possible form of 
ventilator, as there will be a current of air up the chimney. Even 
when there is no fire the chimney provides an outlet for dead or 
superheated air and completes a circulatory system whenever doors 
or windows are opened. 

Operation of Heating Equipment. 1 — The following summar- 
izes important points in successful heating: 

1. The amount of fuel consumed in heating a house depends on 
many factors. Some of the factors are within the control of the 
householder ; others are not. 

1 Technical Paper 67, U. 8 Department of Interior, Bureau of Mines. 



140 THE BUSINESS OF THE HOUSEHOLD 

2. Both convenience of operation and consumption of fuel de- 
pend on the system of heating (and ventilation) installed, and con- 
venience, fuel consumption, and the first cost should be considered 
in making a selection. 

3. The heater should be large enough to meet continuously and 
without attention for periods of eight hours the demand for heat 
in all weather except the most severe. 

4. Heating equipment that burns satisfactorily and economically 
one kind or size of fuel may not be well adapted to burning another. 

5. Ascertain by experiment what fuel and what method of using 
it are best suited to your needs. As a rule, the effort to obtain this 
information will be amply rewarded by the saving that will result. 

6. Attend to the fire regularly and try to anticipate the demands 
for heat. 

7. Keep the heat-absorbing surfaces of the heater free from 
soot and dust by regular cleaning. 

8. Heating systems often fail to meet the demand for heat in 
severe weather because of insufficient draft. To supply additional 
heat, the heater must be able to burn more coal. 

9. The more probable causes of insufficient draft are : 

(a) Chimney not high enough, or having its top too near some 
tall object. 

(6) Chimney, smoke pipe, or gas passages of heater clogged with 
soot or debris, sometimes through the breaking of a partition be- 
tween two flues in a chimney. 

(c) Leaky connection of smoke pipe to heater or to chimney. 

(d) Accidental closing of hand damper in smoke pipe. 

(e) Clogging of fuel bed by clinkers. 

(/) Too great a length of horizontal smoke pipe between the 
heater and the chimney. 

The United States Fuel Administration lays down a definite 
program for household saving of fuel. In midsummer is the time 
for every householder to begin his fuel duty. 

First of All, Clean the Heater. — Clean the range, the heater, 
the chimneys, the pipes, at once. One one-hundredth of an inch 
of soot is as hard to heat as ten inches of iron are. No householder 
desires to waste his own or the Nation's tons of coal by heating 
useless soot. 

The householder will fight soot, as soldiers, airmen, and gunners 



FUEL 141 

fight the enemy. He will clean pipes, stoves, and heaters, and keep 
them, clean. 

While the furnace is having its housecleaning, pipes should be 
examined for leaks. If the landlord refuses to repair breaks or 
cracks in the pipes, the matter should be reported at once to the 
State or county fuel administrator. 

How to run the heater after it is cleaned and repaired is the 
next problem and one that is more important than any other branch 
of household economy. In the average home 25 per cent, of the 
coal used can be saved. Most of this saving can be accomplished 
by proper damper control, and at the same time the household 
may still enjoy the same amount of heat it has been accustomed 
to having. 

General Rules Applicable Alike to Hot-air Furnaces, Steam 
and Hot-water Plants, and Kitchen Ranges. — 1. Be sure there 
is a check-draft damper in the smoke-pipe, besides the turn-damper. 
This check-draft damper is as important in controlling the rate at 
which the fire burns as is the throttle of an engine. Open it to 
check the fire. Close it to make the fire burn more rapidly. Work 
it. Experiment with it in the daily regulation of the fire. The 
coaling door was not put on the furnace to be used as a check- 
damper. Never open the coaling-door to check the fire. If you can 
not check the fire without opening coaling-door, you need proper 
dampers. 

2. The turn-damper should fit the smoke-pipe loosely and must 
never be entirely closed. With the average plant it may be kept 
partly closed most of the time in mild weather, but during severe 
weather it usually needs to be opened wide. 

3. Make use of the lift- or slide-damper in the coaling-door 
only to let oxygen in to consume gases (if you are using soft or 
bituminous coal) after fresh fuel has been added. 

4. Just enough draft, and that from below, checking the draft 
by letting more air into the smoke-pipe, is one of the best general 
rules. This furnishes oxygen from below, necessary for the con- 
sumption of the coal-gases, and at the same time gives time for them 
to be consumed before being drawn up the chimney. This method 
also avoids escape of coal-gas into the cellar. To make the fire burn 
more rapidly, do not open the whole ash-pit door, but the draft- 
damper in the ash-pit door. Opening the whole ash-pit door sup- 
plies air to the fire faster than it is needed for combustion. The air 
is heated, passes out the chimney, and is so much heat wasted. 



142 THE BUSINESS OF THE HOUSEHOLD 

5. All heat-pipes in the cellar should be thoroughly and com- 
pletely wrapped with asbestos or similar covering to prevent loss of 
radiation. 

6. Grates should be cared for properly. A short, quick stroke 
of the shaker-handle will sift the ashes through the grates. Leave 
grates in flat position at all times. Keep fire-pot free from clinkers. 
Clean ash-pit daily, to prevent damage to grates. In severe weather 
grates should be shaken until a glow appears in ash-pit. In mod- 
erate! weather a bed of ashes should be carried on top of the grates. 

7. Avoid poking and slicing fire-bed. It causes draft-holes and 
clinkers. 

8. Never shake a fire that is low until you have put on a little 
fresh coal and given it time to ignite. A thin fire wastes coal. 
Disturb the fire as little as possible. 

9. Storm-windows and storm-doors, weather-strips and such pro- 
tective devices are economical of heat. They .should be used. 

10. Keep the temperature of sitting-rooms at 68 degrees or 
less. Eooms where you do not sit are more comfortable if much 
cooler, as a rule, providing the air is kept a little moist. Get a 
thermometer — a good one. Use it inside, not hanging outdoors. 

11. Keep an even temperature, not more than ?8 degrees. It 
is not economy to allow the house temperature to drop away down 
at night. It take,s just twice as much coal to heat it up again next 
morning. 

12. Turn off the heat in unused rooms as far as possible. Bed- 
rooms should be kept much cooler than living-rooms. Don't try to 
heat all the rooms all the time. If you have a hot-water heating sys- 
tem, make heavy radiator slip-covers and put them over radiators 
when not in use. This will prevent them from freezing. 

13. Keep pans or open-top jars of fresh water on as many radia- 
tors as practicable to keep the air in the home moist. 

14. Study the Specific Rules applying to the heating system used 
in your house. 

Hot-air Furnaces — Specific Rules. — 1. Provide cold-air drops 
from upper floors so as to insure a return circulation from all rooms 
to the air intake of the furnace. 

2. Eegulate the window of the cold-air box so as to avoid too 
great a current of outside air, especially on very cold days. 

3. Always keep the water-container in the air-jacket filled with 
clean water. Moist air heats much more readily than dry air, and is 
better for health, as well as more comfortable. 



FUEL 143 

4. It is advisable to keep a jar of water near one of the first- 
floor registers that send out the most heat. Change the water fre- 
quently, preferably every day. 

5. Hot-air pipes should have a good pitch upward from the fur- 
nace, and should be of sufficient diameter. They should also be 
wrapped with sheet asbestos. A separate pipe for each room with 
cross-damper near the furnace is a good rule. Each pipe should be 
labeled ,so that certain rooms can be shut off at the furnace when 
desired. 

6. Be sure the fire-box is gas-tight. All cracks must be thor- 
oughly cemented or a new section put in before winter sets in. 
Otherwise coal-gas will escape into the air-jacket and be carried up 
directly to the rooms. 

7. Study carefully the General Kules pertaining to other types 
of heating-plants as well as your own. Notice the " clean-out " 
door and remember why it is there. 

Hot-water Plants — Specific Rules. — 1. All the water should 
be emptied from the plant and clean water put in at least as often 
as every spring and every autumn. 

2. When the first fire of the season is built, as the water is 
being heated, use the radiator key to open the air-valve of each 
radiator in turn until all the air remaining in each radiator is 
allowed to escape and water starts to come. Eadiators filled with air 
will not heat. Eepeat this operation frequently. 

3. Always be sure that water shows in the glass gauge of the 
expansion tank which is usually located in the top story of the house 
above the level of all radiators. 

4. Be sure the boiler and cellar pipes are covered with asbestos. 

5. Keep heating surfaces of the boiler well cleaned. 

FUEL 

In the United States, fuel consists of wood, coal, coke, gas 
and oil. Natural gas is used in regions where it is found in abund- 
ance or can be conveniently piped. Electricity, while not a material 
fuel, is a source of heat and light. 

The coal used is anthracite or hard coal, which does not flame 
when kindled, and bituminous or soft coal, which does flame when 
kindled. Anthracite or hard coal contains as much as 98 per cent, 
carbon, and as this element lessens in amount, hard coal graduates 
into bituminous or soft coal. Wood is used for heating purposes 



144 THE BUSINESS OF THE HOUSEHOLD 

in grates in the country sections and temporarily during spring 
and autumn. Coke is the residue left after partially burning soft 
coal. Both coke and oil are being used more and more. A few 
words as to the values of these fuels may be useful. 

Hard Coal. — Hard coal comes in various sizes, as follows, the 
larger sizes being listed first : 

1. Furnace or egg, large. 

2. Egg, small. 

3. Stove or range. 

4. Chestnut. 

5. Pea. 

6. Buckwheat, No. 1. 

7. Buckwheat, No. 2. 

8. Yard pea. 

The smaller size coal is usually cheaper in price, and pea coal 
is recommended by government experts for household use. In first 
starting a fire with small coal, the grate needs to be covered with 
a thin layer of ashes until the fire is well settled. When properly 
burning, the pea coal makes a compact bed, and if the grate is 
not shaken too violently there will be no danger of dumping the 
bed of coals. Mixing small coal with coke or a larger size coal 
makes an admirable combination. More heat can be had from this 
size coal and at a less expense than with any other kind or size 
of fuel. 

Some " hard coal " contains as low as 80 per cent, carbon, and 
is therefore called " semi-bituminous." Hard coal throws out a 
high heat and burns steadily and slowly, but is difficult to kindle. 
All burning coal at first throws off gas that is dangerous to health, 
if allowed to escape into a room. 

Soft Coal. — The principal soft coals are those known as East- 
ern, Indiana, Illinois and Southern Kansas. " Cannel," both the 
English and American, is a bituminous coal found in large sizes 
and is principally used in fireplaces. This derives its name from 
a corruption of the word " candle," as its flame gives a candle-like 
light. 

Soft coal makes a quick, hot fire, but burns out rapidly. It 
is harder to hold a fire with it than with coke or hard coal. It is 
also much dirtier to handle and to use. In price it is cheaper 
than hard coal. Lignite is a form of soft coal of a fibrous or woody 
nature. It is sometimes called " brown coal" or "wood coal." 



FUEL 145 

It leaves an ash resembling that of wood, smells somewhat like peat 
in burning, and its flame is weaker than that of bituminous coal. 
Most of it is found in the western states, principally east of the 
Kooky Mountains. 

Coke. — Coke gives a very quick and a very hot fire. There is 
considerable danger of burning out grates in using coke on account 
of its great heat when under combustion. Ashes should be kept 
on the grate to prevent this. 

Coke in Chicago is about a dollar less per ton than hard coal. 
In most places it is equal in price or more expensive than soft coal. 

To Find the Number of Tons of Coal in a Bin. — It is well 
to know the capacity of the coal bins and thus keep a check on the 
coal as delivered. Eule : Find the number of cubic feet it occupies 
and multiply by the weight of a cubic foot of coal and divide by 
2000. 

Example : Average nut coal weighs about 52 pounds to the cubic 
foot of coal. If a rectangular bin is 5 feet wide and 8 feet 6 inches 
long and filled evenly to a depth of 4 feet, there will be 5 X 8%, X 
4 = 170 cubic feet of coal, or (170 X 52) -^ 2000 = 4.42 tons 
of coal. 

The weight of a cubic foot of various kinds of coal as given in 
a bulletin of the Anthracite Coal Operators' Association is as follows : 

Weight per Cubic feet per 

cubic foot, lbs. ton, 2000 lbs. 

Lehigh Lump . . 55.26 36.19 

Lehigh Cupola 55.22 36.02 

Lehigh Broken 56.85 35.18 

Lehigh Egg 57.74 34.63 

Lehigh Stove 58.15 34.39 

Lehigh Nut 58.26 34.32 

Lehigh Pea - 53.18 37.60 

Lehigh Buckwheat 54.04 37.01 

Lehigh Dust 57.25 34.93 

Free Burning Egg 56.07 35.67 

Free Burning Stove 56.33 35.50 

Free Burning Nut 56.88 35.50 

Pittsburgh 46.48 43.03 

Illinois 47.22 42.35 

Connellsville Coke 26.30 76.04 

Hocking 49.30 40.56 

Indiana Block 43.85 45.61 

Erie 48.07 41.61 

Cannei 49.18 40.66 

Pocahontas Mine Run 55.55 36.00 

Pocahontas Egg Lump 50.00 40.00 

10 



146 THE BUSINESS OF THE HOUSEHOLD 

Wood. — Wood kindles more readily than coal and makes a 
quick fire with flame. Pound for pound its heat is less than coal. 
There is no dangerous gas and under good regulation it gives 
excellent results. Hard wood such as hard maple is in demand for 
grates. Pine is a soft fuel, with much smoke, so care must be 
exercised not to use too much of it in grates, stoves or furnaces, as 
this smoke clogs the stove-pipes and chimneys with consequent 
danger of fire. In the large cities, the cost of wood for fuel pur- 
poses is prohibitive. In the country, where a local supply is avail- 
able, it is common. 

A cord of wood contains 128 cubic feet, represented by a pile 
of wood 8 feet long, 4 feet wide and 4 feet high. This is cut into 
regular lengths and shapes. Variations in length are known as 
one, two, three cuts ; different shapes and sizes are known as cleft, 
split and cracked. In wood, as in coal, labor must be paid for. 

The composition of the .soft fuels mentioned is as follows : 

Wood Peat Lignite Bituminous 

Carbon 50.0 60.0 65.7 82.6 

Hydrogen 6.2 6.5 5,3 5.6 

Oxygen 43.8 33.5 29.0 11.8 

There is also a small percentage of nitrogen in them all. 

Oil. — In some sections oil-burning furnaces have been in use 
for years and are now becoming more common throughout the coun- 
try. Crude kerosene is the fuel. Small kerosene heaters are valu- 
able for emergency use. 

Gas Burners and Grates. — These are for temporary purposes or 
for use in mild climates. As heating units they are expensive, 
except in the few sections where natural gas is available. 

The danger from escaping gas is very great and such burners 
and grates should not be used except with careful watching and 
especially good ventilation in the room. 

Other Devices. — Steam radiators are on the market, which 
have a small tank in the base, where water is heated by gas-burners. 
Electric radiators are available, but the price of electricity is usually 
prohibitive for fuel use. 

Comparison of Fuels. 1 — Advantages and disadvantages of 
various fuels and electricity: 

(*) Technical Bulletin 97, U. S. Department of the Interior, Bureau of 
Mines. 



FUEL 



147 



Fuel 



Wood. 



Advantages 



Anthracite . 



Bituminous coal 



Subbituminous 
Coal and lignite. 



Peat. 
Coke. 



Oil. 



Gas. 



(a) Cleanliness, (b) cheer- 
ful fire, (c) quick increase 
of heat, (d) cheap in some 
localities. 



(a) Cleanliness, (b) easy 
control of fire, (c) easier to 
realize heat in coal than is 
the case with other coals, 
(d) steady heat. 
(a) Low price, (6) avail- 
ability, (c) high heat value 
in the best grades, (d) low 
percentage of inert matter 
( in the best grades) . 
( a ) Relatively low price, ( 6 ) 
availability (in some re- 
gions), (c) responds 
quickly to opening of drafts. 



Electricity. 



(a) In general, the same as 
for wood. 

(a) Cleanliness, (b) re- 
sponds quickly to opening of 
drafts, (c) fairly high heat 
value. 



(a) High heat value, (5) 
immediate increase of heat, 

(c) cleanliness, (d) small 
storage space necessary. 
(a) Ease of control, (b) 
cleanliness, (c) convenience, 

(d) immediate increase of 
heat. 

(a) Every advantage. 



Disadvantages 



(a) Low fuel value, (6) 
large storage space neces- 
sary, (c) labor in prepara- 
tion, (d) scarcity, (e) does 
not hold fire long, (/) un- 
steady heat. 

( a ) High price, ( b ) difficulty 
of obtaining (c) slower 
response to change of drafts. 



(a) Dirty, (6) smoke pro- 
duced, (c) more attention to 
fire and furnace necessary 
than with anthracite. 

(a) Slakes and deteriorates 
on exposure to air, ( b ) takes 
fire spontaneously in piles, 
(c) heat value, generally 
low, (d) heat in fuel diffi- 
cult to realize, (e) fires do 
not keep well, (/) gases gen- 
erated over fire pot some- 
times burn in smoke pipe, 
causing excessive heating. 
(a) low heat value, (b) 
bulkiness. 

(a) Bulkiness, (b) liability 
of fire going out if not 
properly handled, (c) fire 
requires rather frequent at- 
tention unless fire pot is 
deep. 

(a) High price, (b) diffi- 
culty of safe storage. 



(a) High price in many 

pJaces. 



(a) High price. 



Fuels for Cooking. — The same fuels are used for cooking as for 
heating. In the cities artificial gas is becoming almost universal 
for all cooking purposes. Electricity is desirable as a cooking fuel 
where its price permits. Both are discussed in following chapters. 



148 THE BUSINESS OF THE HOUSEHOLD 

The kitchen range which burns coal or wood is the common 
method of cooking of course where gas is not available, and its 
economical management requires the same care as does a furnace. 
The " Blue Flame " kerosene oil range is economical and efficient 
for summer or even for continuous use. 

Increase in Fuel Costs.— The following figures are taken 

from the books of the Peoples Gas, Light & Coke Company of 

Chicago, showing the increase in the prices of various fuels in 1922 

as compared with those of 1915. These of course are wholesale 

prices for purchases in very large quantities. It is the percentage 

of increase, however, that is of especial interest to the student. 

July 1, 1915 January 15, 1922 Per cent increase 

Bituminous coal $1.81 per ton $ 4.88 per ton 114% 

Coke 4.70 per ton 11.93 per ton 153% 

Anthracite Coal 5.72 per ton 11.39 per ton 97% 

Oil .02275 per gal. .058 per gal. 154% 

Gas .80 per 1000 cu. ft. 1.00 per 1000 cu. ft. 25% 

In Conclusion. — A real saving may be made in the careful use 
of both fuel and light. Children and maids should be taught to 
watch both. 

There is a minimum consumption of fuel necessary for the 
operation of any fire. To lower that minimum is poor economy. 
It takes just so much fuel to give a certain amount of heat, and 
if the house is to be warm, fuel must be burned. How to get all 
the available heat out of that particular fuel in that particular heater 
is a problem in economy that should be studied in every detail. 

QUESTIONS 

1. Name the different methods of heating a house or apartment. 

2. Which system is the most expensive to install? 

3. Which is the most satisfactory in operation? Why? 

4. What is the principle of furnace heat? Of hot-water heating? Of 

steam heating? 

5. Why should radiators and registers bear a definite relation to the size 

of a room ? 

6. What has ventilation to do with heating? With humidity? 

7. How may one humidify a room? 

8. What is the advantage of an open fire-place ? 

9. What is anthracite? Lignite? Cannel? 

10. What are the different sizes of hard coal? 

11. What is coke? 

12. What fuels give the greatest heat? The quickest heat? 

13. What is the basis upon which the cost of gas is fixed? 



FUEL 149 

PROBLEMS AND DEMONSTRATIONS 

1. In your vicinity, how much a ton is hard coal. Soft coal? 

2. Are they sold by "long ton" or by "short ton" What is the difference? 

3. How is hard wood sold ? Soft wood ? 

4. How much per month does your family pay for gas ? 

5. How much per year for fuel? 

6. How much a month does this average for the entire year? 

7. How is gas charged for in your community? 

8. A wagon carrying a ton of coal weighs 1850 pounds. How mucn should 

both weigh? 

9. A driver has a load that shows a gross weight of 4020 pounds and his 

wagon weighs 1850 pounds; how much coal should he take off in order 
to deliver to the customer an exact ton of coal ? 

10. If hard coal costs $10.80 per ton, how much will 1500 pounds cost? 

11. If 1500 pounds of coal cost $8.00, what will one ton cost? 

12. A man purchased a pile of wood 16 feet long, 8 feet wide and 8 feet high 

for $8.40. How many cords did he receive and how much per cord did 
he pay for the wood ? 

13. Mr. Jones claimed to have sold Mr. Smith a loose pile of wood containing 

a cord of wood, but Mr. Smith claimed that the wood did not amount 
to a cord. How could each party prove his contention ? 

14. How many cubic feet of air in a room 12 ft. x 16 ft. x 8 ft. high? 

15. If it is estimated that there should be 1 sq. ft. of radiating surface in a 

room to every 40 cu. ft. of air, how many square feet of radiating sur- 
face should there be in the radiators of the room mentioned in the 
preceding problem? 

16. If on account of windows and northern exposure, it is estimated that 

such a room needs 1 sq. ft. of radiating surface to every 20 cu. ft. 
of air, how much radiator surface should there be? 

17. A bin containing a load of nut coal, which when levelled measured 4 ft. 

wide, 5 ft. long, and 3 ft. deep. By measure, how much coal did the 
bin contain? 

18. Another bin contained a load of cannel coal which when levelled meas- 

ured 5 ft. wide, 6 ft. long and 4 ft. deep. How many tons did the 
coal amount to? 

19. Do you know of any other fuels in use than those mentioned in this 

chapter ? 

REFERENCES 

Breckenridge and Flagg, Saving Fuel in Heating a House. Technical 

Paper 97, Dept. of the Interior, Bureau of Mines, Washington, D. C. 
Keene, E. S., Mechanics of the Household. McGraw-Hill Co. 
White, M., The Fuels of the Household. Whitcomb and Barrows. 
Wright, S. S., The Kitchen Fire and How to Start it. S. S. WMght. 
U. S. Dept. of Commerce — Circular of the Bureau of Standards, 

No. 49 Safety Rules, Washington, D. C. 

No. 55 Measurements for the Household, Washington, D. C. 

No. 75 Safety for the Household, Washington, D. C. 



CHAPTER XIII 
GAS LIGHT AND HEAT 

Artificial coal gas is chiefly used for cooking and lighting 
purposes. As a heating fuel its use is .supplementary in gas radia- 
tors, gas-logs or small stoves. Most of the modern apartments are 
piped with cooking connections only. In some houses gas-heated irons 
or machine ironers are in use, but gas as a motive force is seldom 
found, though entirely practicable. 

Other Illuminants. — Except in rural communities and on 
farms, gas and electricity are now the principal illuminating agents 
in the American home. Even here, private gas plants are found and 
electricity should be more common through the use of neglected 
watex-power possibilities. Electricity is discussed in the next chap- 
ter. The old kerosene burners have been improved upon, and it is 
now possible to secure kerosene lamps that are not only artistic in 
appearance but which give as brilliant a light as that derived from 
commercial gas. Even the incandescent mantle is used with kero- 
sene. When the universal rule for safe and agreeable lighting is 
carried out, namely, " Do not look at the naked flame," and proper 
shades or globes are present, the light from a kerosene lamp is very 
satisfactory. To care for the lamps is a burden. 

Acetylene gas, derived from the action of water on calcium car- 
bide, is available for homes and stores not supplied with either gas or 
electricity. The cost of maintenance is small, the light brilliant and 
very satisfactory. The. cost of installation is somewhat high, but 
on the other hand .small in comparison with the results obtained. 
There is danger in the careless handling of such a plant, but im- 
proved apparatus has reduced it to a minimum. The apparatus 
approved by the Underwriters' Laboratories (Inc.) of Chicago may 
be trusted. 1 

Early Lighting Mediums. — In order to properly appreciate 
present-day methods of illumination one should know a little about 
the methods of lighting used before the perfection of manufactured 

1 A set of complete rules for acetylene installation has been published by 
the National Fire Protection Association, 87 Milk Street, Boston. 

150 



GAS LIGHT AND HEAT 151 

gas. During the early days of gas experimentation, which began in 
1784, the use of manufactured gas was too expensive for the average 
householder. A bill for 1100 cubic feet of gas in New York in 
1827 shows the cost to the householder at $11, while a similar bill 
for the same amount of gas rendered in the same city for 1918 shows 
the cost to be 88 cents. 

From 1815 to 1855 candles and sperm oil were practically the 
only illuminants in common use by the average family. During this 
period, whale oil cost about 80 cents per gallon, although from 
1845 to 1855 the price averaged $1.77 per gallon. Tallow candles 
sold at about 15 cents per pound, a pound averaging six candles, 
or 2^/2 cents each. Each candle represented seven burning hours 
at a cost of one-third of a cent per hour. During this period of 
forty years it has been estimated that the average family used the 
equivalent of 20 candle-hours lighting per night, at an approximate 
cost of $24 a year. 

The high price of sperm oil during the decade of 1845-1855 
led to a search for other mediums of lighting, and between 1855 
and 1865 the kerosene lamp was introduced, which increased the 
illumination of the home 50 per cent, without much change in 
cost. 1865 to 1875 was the last decade of the tallow candle and 
the first decade in which gas became an important factor in the life 
of the people. Gas at this period sold for $2.50 per thousand cubic 
feet, and the lighting of the average home increased to about 100 
candle-hours per night, or five times as much as that of the previous 
half century. 

The year 1895 witnessed the reduction in the cost of kerosene 
to 13y 2 cents per gallon, and the cost of gas to $1.50 a thousand 
cubic feet. In 1885 the invention of the Welsbach lamp had in- 
creased the efficiency of gas from 3 to 20 candles per cubic foot, and 
the kerosene lamp with its circular wick now produced 38 candle- 
power. The cost of illumination for this decade, 1885-1895, was 
$25 per family per year. 

Following 1895 kerosene rapidly gave place in cities and towns 
to gas and electricity as a lighting medium and up to 1905 the 
average family cost per year was $20. To-day the maximum gas 
light of the average home is about 360 candle-hours per night, or 



152 THE BUSINESS OF THE HOUSEHOLD 

eighteen times that in the home of 1815, and the annual cost at $1 
per thousand cubic feet of gas is $14.50. 

Standards of Light.— In this country we have expressed the 
measurement of light in terms of candle-power ; the so-called sperm 
candle of prescribed composition and wick, burning at the rate of 
120 grains per hour, in an atmosphere that will not cause the flame 
to flutter, and a condition that will not cause the sperm to gutter, 
has been adopted as the standard of illumination. This illumina- 
tion maintained for an hour is called a candle-power hour. Under 
the same conditions, a wax candle will burn 10 per cent, less weight 
of material per hour and give about the same light, while a tallow 
candle will burn 46 per cent, more material than the sperm candle 
in giving the same amount of light, while the average light of a 
candle burning under usual home conditions would probably not 
amount to more than one-half of a so-called candle-power. 

There has been a recent movement to standardize manufactured 
gas, not in terms of the illuminating power or candle-power its flame 
produces, but in terms of the heat units it develops in burning ; the 
latter is accurately described as the " British Thermal Unit," or 
" B.T.U.," the quantity of heat required to raise the temperature 
of one pound of water one degree Fahrenheit. Standard gas has 
been, for example, 22-candle-power gas; that is, of such quality 
as would produce per cubic foot of gas light equivalent to 22 stand- 
ard candles ; it is proposed by the new standard to require a definite 
heat standard, for example, 565 B.T.U. per cubic foot of gas. 
Shall the light which the naked gas flame gives, or the heat which 
it develops in burning, be the standard of measurement ? Manufac- 
turing conditions, especially the cost of enriching the gas so it will 
itself give illumination, makes the gas manufacturer favor the heat 
unit as measure and the reduction of the illuminating quality of the 
gas. What is the consumer's viewpoint? 

In the old-fashioned slit-tip gas light, the gas itself, burning 
in a broad flat flame, is the illuminant — makes the light. There- 
fore years ago when the largest use of gas was for lighting and 
when the slit-tip flat flame was the standard gas light, it was neces- 
sary that gas be made of a kind and quality to provide a definite 
quantity of illumination. Hence the " candle-power " standard of 
measuring the quality of gas. 

But that period has passed. In the incandescent mantle, the light 
does not come from the burning gas, as in the slit-tip flat flame 



GAS LIGHT AND HEAT 153 

burner, but comes entirely from the mantle being made "white 
hot " by the burning gas. Therefore, it must be clear that " candle- 
power " means absolutely nothing as to the light-giving quality 
of gas when burned in an incandescent mantle. 

The heat-producing quality of gas, measurable in " heat units/' 
becomes the only quality that counts under modern conditions ; for 
heat, and heat only, produces light in the mantle lamp ; and heat is 
all that anybody wants from gas in the stove, water-heater, flat- 
iron, shop and for whatever else gas is used, except the very small 
quantity still consumed in the antiquated flat flame burners. 

To meet these new conditions, " heat unit " gas is now standard 
in practically all of Europe; in Canada, Argentine and Japan; in 
Massachusetts, Connecticut, New Hampshire, New Jersey, Penn- 
sylvania, Maryland, District of Columbia (City of Washington), 
Arizona, Nevada, Missouri, Montana, Washington, Oregon, Ohio, 
Indiana, Wisconsin and Illinois. 

The enriched candle-power gas is necessarily somewhat higher 
in heat units per cubic foot than thinner heat unit gas and a claim 
has been made that reducing the heat units will necessitate more 
gas to accomplish a given result, hence higher cost to the consumer. 
This would seem to be true theoretically, but practical tests up 
to this time are said not to sustain the claim. In a Bunsen burner 
(any fuel burner) a gas carrying an excess of rich hydrocarbons, 
like 22 candle-power gas, will not yield the results, in proportion to 
heat units carried, obtainable from a gas that does not contain 
this excess of rich hydrocarbons. Therefore, for most uses, little, 
if any more, of a 565 heat unit gas will be used to produce given 
results than with the present gas. Exhaustive experiments, now 
being made by the U. S. Bureau of Standards, should result in exact 
information on this point. 1 

Gas Lighting and Health. — The result of tests made by Dr. 
Samuel Eideal, of Royal Westminster Institute, London, sum- 
marizes the relations of gas lighting to health as follows : 

"1. That the pulse-rate, frequency of respiration, blood-pres- 
sure, number of blood corpuscles, body temperature, bodily weight, 
and mental fatigue over the entire three months' test showed no 
greater change with gas lighting than with electric lighting. 

" 2. That the percentage of carbonic acid gas and moisture in 

1 From information supplied by the People's Gas Light and Coke Co., 
Chicago, I1L 



154 THE BUSINESS OF THE HOUSEHOLD 

the air varied no more with gas lighting than with electric lighting 
of equal intensity, and that the rise in room temperature at the 
breathing level was substantially the same in either gas or electricity 
both with and without adequate facilities for ventilation. The 
gas-lighted room was somewhat cooler under the latter conditions. 

" 3. That ventilation was much more vigorous with gas lighting 
than with electric lighting even with doors and windows closed, 
and was sufficient to remove the products of gas combustion, thus 
accounting for the results in (2). This ventilating effect is pro- 
duced by the uprising currents of air from the gas burners. 

"4. That the organic matter from the lungs (which produces 
' stuffiness' and depression), as well as bacterial matter, were pres- 
ent to a much less degree in the gas-lighted room. This effect was 
principally due to the burning of this matter in the flame of the 
gas burner. 

" 5. That gas light is less fatiguing to the eye than is electric 
lighting. This is because of the lower brilliancy of the gas mantle, 
reducing c glare ' from polished surfaces, glazed papers, etc. 

" These tests indicate that gas properly used is not only not 
deleterious to health, but is distinctly beneficial, and that the heat 
produced by gas lamps and heaters may be utilized to produce very 
effective ventilation. This is a most important consideration." 

The Cost of Gas. — Gas-mantle lighting is generally cheaper 
than electricity, although the latter has many advantages in its use 
over gas. Probably the average price for gas in the larger cities 
of this country is 80 cents net per thousand cubic feet. Gas 
appliances are not listed according to a definite cost per hour for 
operation as are most electric appliances, but the following tabula- 
tion from the Monthly Bulletin of the National Gas Association for 
December, 1916, shows what may be accomplished with one, and 
with ten cents' worth of gas for cooking purposes : 

What One Cent's Worth of Gas Will Do — Rate 80 Cents per 1000 Cubic 
Feet: 

1. Will cook the cereal, boil the coffee and boil eggs for a family of eight. 

2. Will toast fifty slices of bread. 

3. Will bake enough biscuits for the breakfast of a family of eight. 

4. Will heat an ordinary bedroom for an hour. 

5. Will heat enough water for shaving for the average man for three weeks. 

6. Will heat the baby's bottle for ten feedings. 

7. Will heat milady's curling iron every day for a month. 

8. Will bring three gallons of cold water to boiling. 

9. Will furnish twelve gallons of hot water. 



GAS LIGHT AND HEAT 155 

10. Will furnish, three hours' continuous ironing. 

11. Will cook enough soup for a family of eight. 

12. W 7 ill fry chops for two meals for a family of eight. 

13. Will heat and operate a large domestic oven for one-half hour. 

14. After being heated, it will operate the oven for three-quarters of an hour. 

15. Will singe twenty chickens. 

16. Will fry four chickens. 

17. Will fry enough waffles for eight people. 

18. Will boil enough potatoes for a family of eight. 

19. Will sterilize fourteen gallons of water for drinking purposes. 

20. Will operate a Rutz (pilot light) lighter for three days — lighting the 

top burners as many times as would be necessary where a gas stove 
is used for preparing all the food of a family. 

21. Will operate three large upright mantle lamps for one hour. 

22. Will make six pounds of ice. 

23. Will operate a 1 horse-power gas engine for forty minutes. 

24. Will operate a 1 horse-power gas-fired, steam boiler for thirteen and 

one-half minutes. 
What Ten Cents' Worth of Gas Will Do— Rate $1.00 per 1000 Cubic 
Feet: 

1. Cook a five-course dinner for six persons, as follows: 

(a) Cream of asparagus soup, toasted bread sticks; 

(b) creamed fish, mashed potatoes, sandwiches; 

(c) prime roast of beef (5 pounds), lima beans, scalloped tomatoes, 

cauliflower with white sauce, baked yams, corn muffins; 

(d) grape fruit salad, French dressing, crackers; 

(e) fancy charlotte. 

2. Bake thirty biscuits and broil a three-pound steak for two cents, or five 

times that quantity for ten cents. 

3. Bake one four-layer cake with chocolate filling for two cents, or five 

four-layer cakes for ten cents. 

4. Bake five large angel cakes at different times. 

5. Fry one hundred waffles. 

6. Heat w r ater for eight hot baths in summer, five in winter. 

7. Cook three meals for six persons. 

8. Run a gas iron 20 hours. 

How the Gas Meter Registers. — The row of circles (Fig. 17) 
registers the total amount of gas consumed. At the top of each 
circle the amount of gas registered for one complete revolution of 
the pointer on that circle is shown. The pointer on each circle 
starts at zero (0) and revolves around the circle ini the sequence of 
the figures, and when zero is reached again, the revolution has been 
completed. Each figure on the " 1 thousand " circle denotes 100 
cubic feet, and the complete circuit represents 1000 ; similarly each 
figure on the "10 thousand," represents 1000 feet; each on the 
"100 thousand/' 10,000 feet; and each on the "1 million" circle 
represents 100,000 cubic feet. 

As each pointer on a circle makes a complete revolution of its 
ten units, there is registered one unit on the next higher circle. 
Thus, while the pointer on the " 1 thousand " circle is making its 



156 THE BUSINESS OF THE HOUSEHOLD 

first revolution around that circle the pointer on the " 10 thou- 
sand " circle is gradually moving toward figure 1 and will register 
1 or 1000 cubic feet when the pointer on the " 1 thousand " circle 
reaches zero again. It then moves to the successive figures around 
the circle at the completion of each revolution on the first circle. 
When the pointer on the " 10 thousand " circle reaches zero, thus 
completing its first revolution, it will be found that the pointer 
on the " 100 thousand " circle is resting on figure 1, registering 
10,000 cubic feet, and will continue around the circle in the way 
just explained. This system of registration is continued until the 
pointer on the circle of the highest denomination has made a com- 




Fig. 17. — Gas meter index reads, 79500 cu. ft. 

plete revolution ; then all the pointers will rest on zero and as the use 
of gas is continued this same process of registration will be repeated. 

Some meters show small dials, one registering one-half cubic 
foot, and another registering two cubic feet, which are especially 
useful in detecting leaks and in testing the consumption of various 
pieces of gas-using equipment. 

Reading the Meter. — In reading the meter index, always read 
the left-hand circle first, then the other dials in succession to the 
right, and add two zeros (00) to the last figure for the hundreds 
shown on the last circle. One hundred cubic feet is the smallest 
amount read in a statement from the gas meter index. When any 
point between two figures is indicated always read the lowest or 
last figure the pointer has passed, until the next figure is actually 
reached or passed. Thus, in Fig. 17 the pointer rests between 
figures 7 and 8, figure 7 being the lowest or the last figure passed 
by the pointer, is the correct figure to read. The next figure is 9, 
because figure has not been reached yet and cannot be registered 
until the pointer on the " 1 thousand " dial gets to zero, and the 
last figure is 5. The entire reading is 79,500 cubic feet. 



GAS LIGHT AND HEAT 



157 



To prove your reading at any time, see whether the revolutions 
required to register the figures that you read have been completed on 
the other circles. 

To ascertain the quantity of gas consumed during the period 
elapsing between the two readings, subtract the earlier from the later 
reading, and the difference will be the quantity of gas consumed. 
From this one can readily calculate the amount of his bill. 

Every gas consumer should learn how to read the index of a 
gas meter and read his own meter regularly, at frequent intervals, 



DOE AND 


PAYABLE 


1422 JONQUIL TERR, 101 FEB. 0, ISIS 1 


1 2 FL» 2 6 nQ DISCOUNT AFTER FEB. 20 


C.WILBUR FABER JR. 5 


to The Peoples Gas Light & Coke Co. dr. office hours 


PEOPLES GAS GUILDINC : MICHIGAN BOULEVARD. ^. TOM „,#> A . m.-to mo p. m. 


CHICAGO, ILL., FEB. 9. 1913 sat-rd-y e.-ao a.m. to t p. m. 


METER READINGS 


CUSTOMERS RECORD OF PAYMENT 




Pirn rv nHtrr-K sir, 


jan 3 o 8 9 8 00 ^n 






jan z 8 7 8 


1.80 


K S 


TO CONSUMPTION OF Z Q CUBIC FT. GAS, AT 


^20 


2* 
<*8 


90CTS. i -ER 1000 


§2 


LESS JO CTS. PER 1000 CUBIC FT. IF PAID ON OR BEFORE FEB 20 




Q Q 


Making Net amount at eo crs. per 1000 cubic Feet 




3g 


As per order Circuit Court entered August 2, 1911 




PFFVinti* nri i * .TiNP&rrt . , 






U4 0! 
O p 

*5 










TO MAINTENANCE OF . 'AMPS FROM FEB. 6 TO M AR. G 




£» 






S3 


DIST. NO. 1 TOTAL AMOUNT DUE . 




| JO AVOID DELAY AND ANNOYANCE BRING THIS BILL WHEN PAYING AT OUR OFFICES ' 







Fig. 18. — A gas bill showing cash discount 

to keep tab on the quantity of gas used. Consumers who make a 
regular practice of reading their meters will have a constant check 
on their gas consumption, thus preventing waste and correspondingly 
decrease the gas bills. The correctness of the monthly bills ren- 
dered to them by the gas company can also be easily verified. 

If a gas consumer has any reason to doubt the accuracy of his 
gas meter, a request for an investigation or a test of his meter from 
such consumer to the proper city department will receive prompt 
attention, 



158 



THE BUSINESS OF THE HOUSEHOLD 



Gas Bills. — A copy of a receipted bill (Fig. 18) shows that 
2000 cubic feet of gas was used during the month which came to 
$1.80, and the discount for prompt payment amounting to 20 cents, 
leaves the bill at $1.60. 

A Customer's Record of Gas Consumption. — The following 
form has been suggested for the use of householders and families 
who desire to read their meters and record the amount of gas 
consumed. It can be placed in any blank book: 



Record 



191 


191 


Date of 
reading 


Index 
statement 


Consumed 
cu. ft. 


Amount 

of bill 


Date of 
reading 


Index 
statement 


Consumed 
cu. ft. 


Amount 
of bill 




00 


00 


$ 




00 


00 $ 




00 


00 






00 


00 




00 


00 




00 


00 | 




00 


00 






00 


00 j 




00 


00 




00 00 






00 


00 






00 


00 | 




00 


00 






00 


00 






00 


00 






00 


00 






00 


00 






00 


00 




Total . . . 


00 


00 




Total . . . 


00 


00 




Average . 


00 


00 




Average . 


00 


00 





Leaks. — The fact that one part of gas in sixty thousand parts 
of air can be detected by the sense of smell, shows how 4 readily 
the presence of a gas leak can be detected. A leak from the outlet 
pipe of the meter or the piping, fixtures and appliances used through- 
out the premises will be registered on the meter and must be paid for. 

Never hunt for gas leaks with a lighted match or open flame 
of any kind ; locate any leak by the sense of smell or apply a good 
solution of soap suds with a brush or sponge to the parts of the 



GAS LIGHT AND HEAT 159 

pipes or fixtures, etc., where a leak might occur and, if gas is escap- 
ing, the soap suds will form bubbles like those the children blow 
through a clay pipe. 

Never use matches or take an unprotected flame into a room, 
cellar, building or any other place where the odor of gas is noticeable, 
or there is the least possibility of gas being present, until you have 
opened the windows or otherwise thoroughly ventilated the premises 
and shut off the meter. To disregard these precautions may result 
in loss of life or serious damage to the premises from an explosion 
or fire. A small proportion of gas mixed with air forms a highly 
explosive mixture. 

When the odor of gas is noticed see whether any burners have 
been accidentally left open; if none have been, try, cautiously, to 
locate the leak and make repairs. If these measures do not locate 
the trouble, notify the gas company immediately. 

The flow of gas through a leak may be temporarily stopped with 
any kind of soap well plugged in and around the place where gas 
is escaping or by the use of a soap bandage tightly secured. 

It is suggested that an occasional test be made on the piping 
and fixtures, etc., in a building to determine whether there is any 
possible leakage of gas that has escaped the notice of the occupants 
of the premises, due to its location in some part of the building where 
currents of air might carry the gas out of doors. This test should 
be made by shutting off all the burners throughout the premises and 
marking the position of the pointer on either of the upper small 
circles on the index of the meter. If the pointer stands still for a 
period of about fifteen minutes, it may be concluded that there is 
no leak of any consequence ; but if the pointer moves forward, and 
you are sure that all the burners are closed, there must be a leak, 
the amount of which may be determined by timing one, or a part 
of one, revolution of the pointer around the circle. 

Prepayment Meters. — It is very important that gas consumers 
who have a prepayment ("quarter in the slot") meter on the 
premises should always heed the warning : It is better never to allow 
the gas to run entirely out of the meter. But if this does happen 
or the lights become very dim be sure to close all gas burners sup- 
plied through your meter before placing another quarter in the 
meter, as gas will escape from any open burner as soon as the money 
is inserted. 

Gas Lights — Open Flame Versus Mantles. — The mantle gas 



160 THE BUSINESS OF THE HOUSHOLD 

burner has, now, very largely superseded the open flat flame type 
of gas burner for use in the general illumination of dwellings, 
stores, factories. 

The XL S. Bureau of Standards has definitely proved that : 

1. The Flat Flame Burner uses up about five times as much as 
the mantle burner to produce the same amount of light. 

2. Flat Flame Lighting costs about four times as much as man- 
tle lighting, including cost of mantles. 

3. Gas Light, when produced by the mantle burner, is the 
cheapest light in the world. 

Inexpensive but durable mantle lights can be had to take the 
place of practically all flat flame burners at a saving. Every 60 
cents paid for flat flame lighting will pay for one of these lights 
complete (both burner and mantle) and for enough gas to produce 
nearly three times the illumination delivered by the flat flame. 

If the open flame burners are in use on the premises, do not 
allow the gas from them to burn with a blowing noise and a ragged 
flame, as a considerable quantity of gas can be wasted in this way. 
Eegulate the flow of gas through the burner with the burner key 
so that it burns with a steady even flame, or use a burner that is 
self regulating. 

It is quite necessary that all gas burner passages and orifices be 
kept clean and in perfect condition to obtain the best results from 
the gas consumed. 

Management of Gas Burners. — Air mixes with the gas going 
into a mantle burner and this mixture burns with a blue or non- 
luminous flame at the tip of the burner inside of the mantle, the 
heat produced raising the mantle to incandescence or luminosity, 
thus it is the mantle that gives the light. Similar blue flame burners 
or Bunsen burners which mix air and gas before burning are found 
on stoves, hot water heaters, etc. 

For the satisfactory operation of any kind of a blue flame 
gas burner it is essential that the proper quantity of air and gas 
mixture be delivered to the burner and that the air and gas be 
in proper proportion and maintained so by the air or gas regulator 
usually provided for this purpose. 

The delivery of an insufficient quantity of air and gas mixture 
to a burner may be due to a lower gas pressure than is sufficient to 
overcome the resistance of the burner passages, or the passages may 
be obstructed by accumulations of dust or dirt. In this latter case 



GAS LIGHT AND HEAT 161 

cleaning is the obvious remedy. Gas burner passages containing a 
wire gauze or similar equipment should be blown out often enough 
to keep them free from obstructing deposits of dirt. Stoppages in 
piping or burner, or too small house piping, wrong adjustment of 
the gas cock at the meter or burner, improper regulation of air 
mixer, and improperly constructed mantle burners, are frequent 
causes for insufficient gas pressure. 

Economy in gas consumption is promoted by not burning gas 
flames on gas stoves long at their greatest height. In cooking 
foods in water, after the water has come to boiling, it will continue 
at the proper temperature to cook the food, if a low flame is 
maintained. A simmering burner is an economy. An oil stove oven 
placed over a top burner of the gas range uses less gas than the regular 
gas oven ; a piece of sheet-iron under the flat-irons and a tin or sheet- 
iron cover over them ; the triple saucepan that fits over one burner — 
each conserves heat and so lessens the gas used. The iron stove top 
for gas ranges promotes economy. Watch lights also, and do not 
leave them turned on. 

All Homes and Apartments Should be Equipped for Gas. — 
There is a tendency on the part of builders and contractors not to 
pipe modern houses and apartments for gas except for cooking pur- 
poses. The popularity of electricity as a lighting medium has dis- 
counted the use of gas for this purpose in the minds of the general 
public, but whether either medium is to be depended upon as the 
principal source of supply, the builder should see to it that every room 
is equipped both with gas and electricity. 

Sudden storms, damage to feed wires or interference at power 
plants and possible strikes cause a suspension of electric service that 
may prove inconvenient or become the source of considerable hard- 
ship. If the house or apartment is equipped with gas lighting, this 
may be used in such emergencies. 

Gas Apparatus. — The various devices and appliances on the 
market for the convenience of the home, and which depend upon 
the consumption of gas for operation, are well known, so that a list 
of the more important of these appliances is all that is necessary in 
connection with this chapter. 

Hot-water heater, Gas plates for cooking, 

Instantaneous hot-water heaters, Incinerators, 

Automatic hot-water heaters, Toasters, 

Gas ranges, Chafing dishes, 

11 



162 THE BUSINESS OF THE HOUSEHOLD 

Waffle irons, Gas logs, 

Percolators, Portable gas heaters, 

Samovars, Gas grates, 

Irons, Gas-heated mangles, 

Water sterilizers, Gas-heated clothes dryers, 

Vacuum cleaners, lief rigerat ion by gas. 

Gas for Household Power. — Internal combustion engines or 
gas engines can be had for use with manufactured gas or natural 
gas. If a small engine is to be installed for domestic power, one 
should investigate the use of these fuels if available. 



QUESTIONS 

1. What is meant by candle-power? 

2. What is meant by a British Thermal Unit? 

3. How is acetylene made? Is there such a lighting system in your vicinity? 

4. What is the cost of kerosene and of gas in your community? 

5. How is illuminating gas measured? 

C. If you smell gas in a room, what should you not do? 

7. How may a small leak be temporarily stopped? 

8. What advantage follows the prompt payment of gas bills? 

9. If the mantle flame grows dim, what is a probable cause and how 

would you remedy it? 
10. What is a prepayment meter and what cautions should be observed 
in its use? 

PROBLEMS 

1. Read your gas meter at intervals of one month and calculaW the cost 

of gas for each interval. 

2. Watch yourself and others to see how you may lessen the cost of gas 

or other illuminant in your home. 

3. The index on the right-hand dial of a gas meter is between 2 and 3; 

the middle index is between 3 and 4; the left-hand index is between 
8 and 9. What is the meter reading? 

4. Supply the last reading and make out the bill at 80 cents per M. 

5. If you use kerosene, calculate the capacity of your lamps; how many 

hours do they burn on an average during Nov., Dec, Jan. and Feb. ? 
C. What does it cost to light your house with kerosene? Reckon the labor 
for caring" for the lamps at the price that you would have to pay 
per hour. 

REFERENCES 

Oootney, F., The Lighting Book. McBride, Watt. 

Keene, E. S., Mechanics of the Household. McGraw, Hill Co. 

U. S. Bureau of Standards, Safety for the Household. Washington, D. C. 



CHAPTEE XIV 
ELECTRIC LIGHT AND POWER 

Electricity is the great modern servant of all work. Through 
its means we may take the heat of coal or the energy of the water- 
fall and apply it to such every-day tasks as lighting the living room, 
browning the breakfast toast, or sweeping the rugs. We can thus 
make coal or water power do our work without any of the fuss of 
tending to the fires or running the water wheel, without any of the 
heat, smoke or jarring noises of machinery in our establishments. 
It is only necessary to have a system of wires in our home con- 
nected to the lines of the central station company running in the 
street, to supply the proper device, such as an incandescent lamp, 
a toaster or a vacuum cleaner, and then let the electricity do the 
work. 

Much has been made of the mystery of electricity, but there is 
little mystery in its three major household applications: lighting, 
heat and mechanical power. These are all simply forms of work, 
and it is for the work done that the central station company 
charges. To turn the motor of the vacuum cleaner for one hour 
requires a definite amount of work. The energy to do this work 
is stored in coal and when the coal is burned the energy is made 
available for sweeping, through the medium of electric current. 
That is, instead of turning the coal energy into steam at home 
and using the steam in a little engine to run the fan of the cleaner, 
the heat of the coal is used at the central power station. Here 
it is applied to run machines which pump electric current and this 
current in turn, flowing through the electric wires in the home, 
makes the electric motor on the vacuum cleaner revolve. The fan 
is whirled rapidly and the energy of the coal is used in cleaning 
the Tug. 

Rates of Charging for Electricity. — To make a fair charge 
for electrical service then, it is only necessary to measure the 
amount of work done. The company measures at the house meter 
the total amount of electrical work done on the premises and 
charges for this. For any measurement some unit quantity must 

163 



164 THE BUSINESS OF THE HOUSEHOLD 

be adopted as a standard, and for electrical work the unit has been 
named the watt hour. This unit quantity happens to be very 
small and it is more convenient to express results in terms of 1000 
times the unit amount, or 1000 watt hours. Using the metric system 
prefix for 1000, 1000 watt hours is called a kilowatt hour. A 
kilowatt hour of work is equal to that done by one horse-powejr in 
1 1/3 hours. The vacuum cleaner motor does this amount of work 
in about five hours, while the electric flatiron does it in two. In 
other words, the flatiron requires coal to be burned two and one-half 
times as fast as the vacuum cleaner, or in one hour it will use up 
the energy of two and one-half times as much coal* as the cleaner. 

The most convenient way of giving the size of electrical lamps, 
heaters and motors, as suggested by the foregoing, is to state how 
fast they convert electrical energy into work. To find this speed 
of working we simply divide the amount of work the device has 
done by the time it has taken to do it, or the watt hours by the 
hours, and get the speed of performance in watts. The primary 
unit of rate of work is thus one watt or, again for convenience in 
stating the result, we may take 1000 timesi this, the kilowatt. If 
you know the size of any device in watts, you know just how fast 
it will consume electrical energy. Thus, a 50-watt lamp turns 
50-watt hours of electrical energy into heat and light every hour 
and hence, in 20 hours will use 50 X 20=1000 watts=l kilowatt 
hour (KWH) of electrical energy. As said above, a 500-watt^ 
electrical iron in two hours converts 500 X 2=1000 watts=l KWH 
of electrical energy into heating work. 

To measure the consumption of electrical energy the central 
station company installs a watt hour meter at the point where the 
wires enter the building. This meter is in reality a tiny motor, 
so arranged that the revolutions of the rotating part are exactly 
proportional to the amount of energy which passes into the building 
through the meter at the point where it is connected. The revolu- 
tions of the shaft are counted up by a series of dials (in form 
precisely like the gas meter, p. 156). 

Reading Electricity Meters. — The electric meter is read as is 
the gas meter, on the dials from left to right, the right-hand dial 
indicating units, the next to the left tens, and so on in decimal 
ratio — the unit being the watt hour. 

For uniformity, the dial values of all meters of the same type 
are usually the same, without regard to the capacity of the meter, 



ELECTRIC LIGHT AND POWER 165 

so that a multiplying factor, called a register constant, is neces- 
sary for meters of large capacity. This register constant is 
definitely established by the manufacturer of the watt hour meter 
and is plainly indicated on the dial face as "Multiply by" (whatever 
the constant may be) . 

To determine the amount of electricity registered during a 
given time subtract the reading of the meter at the beginning of 
the period from the reading at the end of the period. If there is 
no register constant marked, the difference of the two readings is 
the amount of the consumption in the unit marked on the dial 
face. When a register constant is marked at the bottom of the dial 
face multiply the difference of the readings by this constant to 
obtain the consumption. 

"Maximum Demand Charge." — Some companies are basing 
their electric bills partly on the maximum amount demanded by a 
customer at any time during the month, and there is a certain 
justice in such a charge. If electricity were a commodity which 
could be stored in tanks like gas, or delivered in bags like coal, 
it would merely be necessary to charge for the amount which the 
customer bought, but one of the special characteristics of electrical 
energy is that it must be made at the instant used. Now, the 
demands vary greatly during the day and night, as transportation, 
office and home use varies. The company, however, must have 
* machines in its stations large enough to pump all the current 
which can possibly be required for the maximum use, which comes 
in the evening, of course. They must have, too, underground 
cables and overhead wires large enough to carry this current easily, 
and meters in the customers' homes of sufficient size to pass the 
greatest amount of current the customer will ever require without 
damage to the delicate mechanism. 

In every detail, therefore, the amount of money which must be 
invested in equipment is determined not by the average amount 
of electricity used, but by the maximum. To supply any given 
customer the company has to provide a system sufficiently large to 
meet his greatest demand, and in consequence it is a just basis 
of selling the service to charge in part for the use of the equipment 
needed for this customer's maximum demand, as well as in part 
for the energy actually consumed by him. 

To measure this maximum demand element of the bill an 
additional meter, known as a maximum demand indicator, is used. 

12 



166 THE BUSINESS OF THE HOUSEHOLD 

This registers the highest rate of consumption of electrical energy 
or, in other words, the highest speed of working of the electricity 
passing through it since its last adjustment. These indicators are 
set back to zero once a month, and consequently the indications 
recorded are the maximum demand during the month. For ex- 
ample, if the maximum demand indicator shows 4^ kilowatts, the 
particular customer's installation in question has required that 
4^ kilowatts of generating and transmitting capacity be available 
at some time during the past month. To bring this to a daily 
basis it is assumed that the customer may require this installation 
for one hour every day and he is charged, therefore, for thirty hours 
use of this amount of equipment during the month. For small 
customers the additional investment in a maximum demand meter is 
not warranted and, instead, the probable requirement of the electrical 
appliances connected in their premises, based upon average use 
in households, is used as their maximum demand; for example, a 
home having equipment connected to average a total of 900 watts 
if all equipment is being used is found to have an average maximum 
demand of 500 watts, or y 2 kilowatt. One-half kilowatt for one 
hour per day per month would consume 15 KWH; hence, for all 
customers having about 900 watts of equipment the monthly maxi- 
mum demand charge is made for 15 KWH. For larger customers 
there is more variation in the individual uses of electricity, however, 
and the maximum demand meters are then installed. 

Typical Electricity Rates. — These two elements, the central 
station equipment required and the amount of energy consumed, 
are therefore often combined in electric rates. Thus, the 
Commonwealth Edison Company of Chicago at present charges for 
its service as follows: 

Ten (10) cents per kilowatt hour for electricity used equivalent 
to, or less than, the first 30 hours' use per month of the maximum 
demand in the month. 

Six (6) cents per kilowatt hour for additional electricity used 
equivalent to, or less than, the next 30 hours' use per month of 
the maximum demand in the month. 

Three (3) cents per kilowatt hour for all electricity used per 
month in excess of the equivalent of 60 hours' use of the maximum 
demand. 

A discount for prompt payment is allowed of one (1) cent per 
kilowatt hour on that portion of the bill computed at the 10-cent 



ELECTRIC LIGHT AND POWER 



167 



and 6-cent rates when the bill is paid on or before ten days after 
its date. 

Fig. 19 is an example of a bill rendered for electrical service 
in 1918. The figures remain the same for 1922. Note that the total 
monthly consumption was 30 kilowatt hours. This equalled : 

First 30 hours use of maximum equal to 14 KWH @ 10c $1.40 

Second 30 hours use of maximum equal to 14 KWH @ 6c 84 

Excess over 60 hours use of maximum equal to 2 KWH @ 3c 06 

Gross amount of bill $2.30 

Discount lc per KWH on 10c portion 14c 

Discount lc per KWH on 10c portion 14c 

Discount total 28c .28 

Net bill $2.02 

All central station companies are glad to explain their rates and 
to show just how any given bill has been figured. Electricity meters 



ELECTRIC LIGHT BILL 



Meter Readings 



OCT, 30 



Total 

SEPT 30 ftsws*.. 1 * 



First 40 

Hours Use ol 
Maximum* 
Kilowatt Hours iW-Hr*. fe lOe 



Hour* Um of 

Maximum 
IW-Hr«.@ 6e 



0594.- 



...30, 



14 



14 



.0.62!. 

TO 

Commonwealth Edison Company 

CENESAL OFFICE. EDISON BUILDING, 72 W. ADAMS STREET. CHICAGO 
OrnccMouaa: Mom a : so *.js. to e: so p.m. satukda* t:io ». an to % ■■,■. 



Exeats Q*or 
60 Hours Uso 

Of Maximum 
KW-Hrs. ft 3c 



date NOV 9 1918 

MtCMMtof test? 
IW-Hr. or 10c an* 
CROSS 6c Portion emir 
BILL. If Faloossr Before NET 

NOV 19 



2 • 2 30 



28 



2 02 



QCNCMAl OmCCS). T2 W. ADAMS ST. BNANCH OFTJSS. 41 1 SO. PCONtA ST. 

EtrcTBic Shop. Jackson a Michigan Burs. ~ * S601 Lowe Ave. 

Branch Orrict.ei 03 So. Chicago Ave " B846 W. Lank St. 

3137 Logan Blvd. " BT4B Lincoln Ave. 

BRANCH Omci. 4833 BNOASWAV 



APTKR 10 DAYS THIS BILL CAN BE PAID ONLY AT THE ABOVE AOOI 



FOR A Fas or FITS CENTS this bill can be paid a< Money Order Agenda of the. American 
Companies, thus string- you time, trouble sod extra car fan. Money 
icse Companies (usually with drug-gists) will be found in your Immerfiu. 
I SIGH. Always see that too obtala-th* EarBES 
whea paid st these Agencies. 



Order Agencies of 
neighborhood— LOC 
BaCBIPT stamped 

m CUSTOMER'S RECORD OF MTiEfT-filf or Ckael to.. 






C.W.TABSR, 

2 FL. 

1422 JONQUIL TERR. 



23 

6 

.X 



Fig. 19. — A bill rendered for electrical service 



are probably the most accurate measuring devices in common use, 
and the reading of these meters and the figuring of the bill is, after 
all, a simple matter. 

Safety With Electricity. — In using electricity in the house- 
hold, just as for other natural aids, some simple precautions should 
be borne in mind. Thus, everyone knows that leaking gas may 
lead to fatal results, but properly used it is one of the most con- 
venient fuels yet developed for the cook stove. In the same way 



168 THE BUSINESS OF THE HOUSEHOLD 

we should avoid contact with wires or utensils which will permit 
the electric current to enter our bodies. As a matter of fact, the 
human skin, when it is very dry, resists electricity excellently ; but 
moisture, even moderate perspiration, changes the character of the 
surface so that the current readily enters. Hence, in the bathroom 
or kitchen, where water is present in large quantities, there is 
considerably increased possibility of electric shock through wet 
hands or other parts of the body. Electrical appliances, electric 
wiring and the fittings used for connections are manufactured 
carefully with insulating material between the current-carrying 
conductors and all portions of the equipment with which the person 
may come in contact. If this insulating material remains dry and 
intact there is no possibility of shock. Occasionally, however, water 
is splashed about or parts of the structure become worn so that 
electric current leaks to the outer surfaces of the apparatus. These 
possibilities should be borne in mind and shock avoided, just as 
we make it habitual to shut off the gas completely. The most 
useful precautions are : 

Avoid handling switches, cords or ^appliances with wet hands. 

Do not touch electrical equipment with one hand while the 
other hand or any portion of the body is in contact with moist 
or metallic surfaces. 

Have flexible cords and apparatus in general repaired by 
competent electrical workmen if chafed insulation appears at any 
point. 

If even slight shock is felt in manipulating any electrical con- 
trivance have the equipment inspected and put in order at once. 

Attention to these four points will insure complete personal 
safety. Certain other points may well be borne in mind, however, 
to secure the best service possible from electric apparatus. These 
are: 

( 1 ) Handle all equipment with reasonable care. Thus, in disconnecting 
cords from, flat-irons or other utensils, pull the plug away quickly, but do 
not jerk the cord so as to gradually loosen its connection to the plug. When 
an incandescent lamp is taken out of a socket, in order to connect some other 
equipment, remember that the wire in the lamp is often finer than a human 
hair; hence lay the bulb down gently and protect it from rough blows. 

(2) Should utensils fail to work, turn on one of the electric lamps. If 
this does not light, the electricity is off the circuit. The trouble may be 
due to a blown "fuse," which can sometimes be remedied as in (3) below, 
or it may be on the main wires outside your home. In the latter case the 
central station company must be notified immediately. If the lamp lights 



ELECTRIC LIGHT AND POWER 169 

properly, however, there is something wrong with the utensil, and it should 
be disconnected immediately. 

( 3 ) At the point where the wires enter the building you will find a cabinet 
containing a "main switch" and several "fuses." These fuses are either in 
the form of hollow plugs, screwed in like an incandescent lamp, or long cyl- 
inders, looking something like cartridges. The first are called Edison plug 
fuses; the second cartridge fuses. Inside the plug or cartridge i3 a small 
length of metal which melts at comparatively low temperatures. The 
connections are so arranged that the current must flow through one of these 
fuses to reach any part of the house. If more current than is safe for the 
wiring flows through it, the fuse heats, quickly melts open and so stops the 
current. The fuses are put in the circuits for your protection, and must 
never be replaced by a piece of copper wire or any similar makeshift. Such 
a substitution removes all protection by permitting such large currents to 
flow in cases of trouble as may heat the wiring red hot'and lead to disastrous 
results. If the central station company gives you an extra supply of fuses, 
you will be able to replace blown ones yourself. To do this, open the main 
switch : inspect all the fuses to see which is burnt ; replace this with another 
of exactly the same size, as marked on the fuse; and again close the main 
switch. Then try the apparatus, or lamp, which you were using at the 
time the electricity ceased. If the fuse blows again, ask the central station 
company at once to send a trouble man to locate the difficulty. 

This last group of suggestions merely tends to better service. 
All these may be disregarded if it is made a practice to call the 
central station company every time anything goes wrong, but the 
points are so simple that it is believed most people will prefer to 
remember and apply these measures themselves. 

Wiring. — The Society for Electrical Development says: 

"It is impossible to over-emphasize the importance of adequate 
wiring, both in size of conductors and number of outlets. Just 
as too small a pipe will prevent an adequate flow of water or steam, 
so wires of insufficient diameter interpose too much 'resistance' 
to the flow of electric current, causing reduced 'voltage* and un- 
satisfactory service in lighting and other devices. 

"Allow for too many rather than for too few outlets, both for 
lighting purposes and for floor or baseboard 'plugs'; there is no 
maintenance expense after they are once located. 

"Of switches and controlling devices the number is legion, 
adapted to every conceivable purpose and condition. Obviously, 
clothespress lights should be automatically operated by the opening 
and closing of the door, but provided with an auxiliary wall switch ; 
cellar or basement stairs should have push switches conveniently 
located at the top ; bathrooms and passageways may advantageously 
have dimming devices, etc. Pull, push, pendent and other switches 
are to be had in every variety of finish, and 'indicators' (tiny bulbs 



170 THE BUSINESS OF THE HOUSEHOLD 

like those used on telephone boards) should be used on heating 
and cooking devices where the current may be carelessly left on 
after using." 

ELECTRIC LIGHTING 

Incandescent Lamps. — The ordinary Mazda lamp consists of 
a sealed glass bulb enclosing an extremely fine tungsten wire. The 
bulb is exhausted to a perfect vacuum, the vacuum serving to 
protect the wire from combustion and also to prevent loss of heat, 
just as in the popular vacuum bottles the temperature of the 
contents is maintained. The electric current flowing through the 
tiny wire heats it white hot and light is given out until the wire 
is destroyed by the enormously high temperature. When it is 
remembered that this does not occut until 1000 hours or more of 
burning, the perfection of these lamps can be appreciated. The 
older and much less efficient carbon lamps should be discarded. 

Mazda lamps are available in many sizes, those giving about 
45, 37, 30, 18, 10 and 6 candlepower being most suitable for home 
use. These consume electricity at the rate of 60, 50, 40, 25, 15 and 
10 watts, respectively. As the size of the lamp diminishes the 
diameter of the filament wire decreases; hence, the 10-watt lamp 
is much more fragile than the 60-watt lamp and must be handled 
with correspondingly greater care. For most household applica- 
tions the 40- to 60-watt lamp in the living room, dining room, 
bedroom and other principal spaces, and a single 25-watt lamp in 
smaller rooms and closets give good results. 

In using these lighting sources it must be borne in mind that 
the filament is much too bright to be looked at. If eyesight is 
to be conserved, it is essential that a proper shade or reflector be 
placed on every lamp. For many fixtures even this does not fully 
conceal the lamp bulb and in such locations a special lamp covered 
or partially covered with a translucent opal lacquer should be used. 
Of course, this lacquer absorbs some of the light. Such absorption 
is generally not more than 10 per cent., however, and the 90 per 
cent, of the generated light which gets through it is much more 
effective for good lighting than the 100 per cent, from a clear lamp. 

For general lighting standard lamps in the straight side, pear- 
shaped bulbs should be used, for these are made in so much larger 
quantities than any other form that the quality of the lamp is 
considerably better. For certain decorative applications, however, 
spherical bulb lamps are available, and smaller bulbs in candle- 



ELECTRIC LIGHT AND POWER 171 

flame or other ornamental shapes may also be obtained. These 
last are known as candelabra and miniature base lamps, and 
although they are sometimes excellent for special effects, they 
should never be used as the main source of illumination. 

These points may well be remembered in choosing fixtures for 
the home. Designs which expose the lamp bulbs, as in the so-called 
candelabra fixtures, should always be avoided. Electric imitation 
candles, like other imitations, are most questionable art, and, 
perhaps more important, exposed electric lamps mean ultimately 
impaired eyesight. The semi-direct fixtures, in which the lamps 
are concealed by glass bowls, directing the greater part of the light 
to the ceiling, -are especially effective, while the indirect system of 
lighting units, in which the bowl is opaque and all the light that 
is used is first thrown to the ceiling, is favored by many. 

The larger lamps, as, for example, the 60-watt size, are so 
efficient, give so much light for each watt hour of electric energy 
consumed, that it is possible to filter the generated light 
economically. A filter may be chosen to permit only those colors 
of light to pass which are desired to give special effects. In the 
living room a golden amber tone is often desired, and this may 
be obtained by surrounding the lamp with an amber shade or 
dipping the bulb in an amber lacquer. In the kitchen, where it 
is desired to see the true colors of meat and other food, a special 
lamp enclosed in a blue glass bulb gives artificial daylight. In 
this case the blue glass filter is scientifically combined to allow 
just those proportions of the generated light to pass which will 
mix together to produce white daylight. These special lamps cost 
a little more than the standard plain ones, but in many cases the 
result offsets the expense. 

The Comparative Cost of Electric Lighting. — While elec- 
tricity is more expensive than light from gas-mantles, it is cheaper 
than open-flame gas burners, kerosene lamps, or candles. 

A test made by the Society for Electrical Development with 
six candles showed that only 2.68 candlepower hours could be 
obtained for one cent. On the other hand, it was estimated that a 
20-watt lamp, based upon a rate of 9 cents per kilowatt hour, can 
be lighted for 50 hours at a cost of 9 cents. This is equal to an 
efficiency of 850 candlepower hours, or 35 times as much light as 
can be had from a candle for one cent. 

With kerosene at 15 cents per gallon, a kerosene lamp will give 



172 THE BUSINESS OF THE HOUSEHOLD 

72 candlepower hours for one cent. With electricity at 9 cents a 
kilowatt hour, 72 candlepower hours for one cent is balanced against 
94 for electricity, or 22 candlepower hours in favor of electricity. 

An open gas flame, with gas at 85 cents per thousand feet, 
will give 51 candlepower hours for one cent, as against 94 candle- 
power hours for electricity with electricity at 9 cents' KWH. With 
the best gas-mantles, however, one cent will purchase 201 candle- 
power hours. 

ELECTRIC HEATING AND COOKING 

Flat Irons. — The most popular of all domestic applications of 
electric heat is probably the flat iron. It provides tfhe convenience 
of continuous and even temperature in the iron, together with the 
entire absence of wasted heat in the room. Irons may be obtained 
in a considerable variety of shapes and some slight range of weight 
and electrical consumption, but one weighing about six pounds and 
consuming 500 or 600 watts is best for the average household. For 
large households electrically heated machine-irons will often prove 
economical for flat work. 

With all heating appliances, and especially in using irons, the 
most important habit to form is that of always turning off the 
current when not in actual use. Standing idle with current flowing, 
the temperature rises far above working limits and, although the 
apparatus may not be injured, the fire hazard becomes considerable. 
Moreover, the electric meter faithfully registers the wasted energy 
and the bill reflects the user's carelessness. 

Electric Cooking. — Next to the iron in convenience come the 
wide range of utensils for electrical cooking. The recent tendency 
has been to do more and more home cooking electrically. Beginning 
with single devices for warming a little milk, or preparing coffee, 
the equipment has been enlarged until complete electric ranges are 
now in use in many households. 

In all cooking the question of fuel cost is fundamental. Com- 
paratively large quantities of electricity must be consumed in 
baking and similar operations and it is only where especially low 
rates are offered for electricity used in cooking that electric ranges 
can be operated at expense comparable with those consuming other 
fuels. Where the maximum demand system of charging (p. 165) 
is in effect it is customary to omit the ranges and other heating 
and cooking devices in computing the electric load. Hence, all 



ELECTRIC LIGHT AND POWER 173 

the work done by these utensils is paid for at the lowest rate. In 
many other communities a separate meter and system of wiring- 
is installed for the range and an especially low rate offered. This 
practice is developing rapidly and local conditions should always 
be investigated, for the advantages of the electric stove are many. 
The advantages claimed for the electric range are: 

1st. Lessens kitchen heat. 

2nd. A cool kitchen lessens melting of ice in the refrigerator. 

3rd. Regulation of heat is perfect. 

4th. Cooking process may be delayed at will, which means hot meals 

under all conditions. 
5th. No dirt, little work 
6th. No matches; no flame. No danger from explosion and lessened fire 

hazards. 
7th. No gases. 
8th. Oven retains temperature long after heat is turned off, on the 

principle of the tireless cooker. 
9th. Reduces shrinkage of food sometimes as much as 10 per cent., as 

every ounce of juice remains in the food. 
10th. Saves time, as it needs no watching. 

All these advantages are not yet fully realized, but it is be- 
lieved that the electric range embodies them far better than any 
other range. On this topic Professor Percy Wilcox Gumaer, of 
the Experiment Station of the University of Wisconsin, says : 

"The present status of the science of cookery is due, in a large degree, 
to the lack of adequate means of controlling the temperature of the food. 
When using the ordinary wood or coal cooking range the degree of heat is 
controlled chiefly by dealing with the food itself rather than by regulating the 
heat at the point of combustion. The amount of draft necessary to promote 
the combustion of the fuel causes too great a degree of heat in the oven or on 
the stove to enable the cook to deal with the food in the proper way, except 
by constantly watching it, stirring it and changing the position of th.e 
vessel on the stove or in the oven. 

"With the advent of electric ovens a revolution in the methods of 
cooking has become possible: Automatic electric ovens will probably be 
developed in which the temperature will be accurately controlled and the 
necessity of constant vigilance will be removed. Some kinds of food will even 
be prepared in advance, placed in the oven and without any further atten- 
tion on the part of the housewife, the current will be automatically turned 
on at a predetermined time. The temperature of the oven will increase to 
the desired value, and there remain constant until the food is properly cooked. 

"With this method perfected the advantages of electric cooking over the 
other methods will be great, and in many cases the cost will not be excessive. 
To the possibility of obtaining uniformly well cooked food should be added 
the saving to the housewife in time and worry and the absence from the 
kitchen of excessive heat. The engineer's problem is, then, to design practical 
copking devices in which the temperature can be accurately regulated with a 
minimum of attention on the part of the housewife." 



174 THE BUSINESS OF THE HOUSEHOLD 

Kegarding cost, the Society of Electrical Development says : 
"The cost of cooking will, of course, vary with each family and 
be at a minimum when the cooking is done by one accustomed 
to the use of the electric range. The bills for the first month's use 
are usually the highest, because of a tendency on the part of the 
user to experiment with the various devices. Figures obtained 
from many customers show that the average family of four or five 
persons will consume from 100 to 125 kilowatt hours of electric 
energy. With the cost of electric current ranging from two to 
five cents per kilowatt hour, the monthly cooking bills vary from 
$2 to $6.25." 

Miscellaneous Cooking and Heating Utensils. — In compar- 
ing the consumption of cooking and heating appliances, it is some- 
times convenient to supplement the size as rated in watts by the 
"unit service." This last term has been adopted for the number 
of hours a device may be operated continuously with one kilowatt 
hour of energy. In the following table is shown the range of sizes 
for different utensils in watts and also the unit service for each 
utensil, or the number of hours it must be operated to consume 

1 KWH of energy or do 1 KWH of work. The relation of the 
two columns is obvious. Thus, a brazier, consuming energy at the 
rate of 125 watts, uses 125-watt hours in 1 hour or 1 KWH in 

— _z=8 hours; and a larger brazier, consuming at the rate of 

500 watts, uses 500-watt hours in 1 hour or 1 KWH in vtttt or 

2 hours. 

ELECTRIC POWER 

Under the heading "Electric Power" may be grouped all devices 
operated by means of an electric motor. Among the most useful 
are electric fans, vacuum cleaners, washing machines, sewing 
machine motors, ice cream freezers, meat choppers and grinders 
and small emery and buffing wheels for sharpening knives and 
polishing steel and silverware. In each of these the motor is the 
vital element and much more satisfactory service will be obtained 
by giving this little machine proper care. Perhaps the most 
important point is to oil the bearings carefully, as frequently as is 
suggested in the instructions furnished with the apparatus. Many 
of these small motors rotate at extremely high speed, even up to 
10,000 revolutions per minute, and unless the bearing surfaces are 
properly lubricated, excessive wear and heating will surely follow. 



ELECTRIC LIGHT AND POWER 175 

Proper lubrication, however, means just what the instructions 
specify. If these read "two or three drops of oil in each oil hole 
once a month/' this means two or three drops and no more. Too 
much oil is as bad as too little, for it is thrown into the electrical 
windings by rapid rotation, accumulates dust and grit, and causes 

Size in 
Watts 

Brazier (chafing dish heater) 125-500 

Broiler 1000-1500 

Chafing Dish 440-600 

Coffee Percolator 300-500 

Curling Iron 15-25 

Curling Iron Heaters 60-90 

Disc Stove 200-660 

Double Boilers 100-400 

Egg Boilers 250-500 

Fans (8 inches to 16 inches diameter) . . 20-100 

Fireless Cooker 600-660 

Foot Warmer 100-400 

Frying Kettle 500-1500 

Frying Pan 550-660 

Griddle (7"x 11" to 17" x 18") 800-2000 

Grill 500-600 

Hair Dryer 50-75 

Heaters, Water (For entire house) 600-2000 

Heating Pads 50-100 

Hot Water Appliances 150-1000 

Immersion Hot Water Heaters 500-2500 

Irons 150-550 

Ironing Machine 2000-5000 

Oven— Portable Electric 500-2000 

Ozonizer 10-20 

Saute Pan 250-660 

Serving Tray Heater 300-400 

Soldering Iron 100-200 

Table Range -550 

Tea Pot 400-500 

Toasters 400-600 

Traveller's Stove -250 

Tureen -300 

Wafile Iron 750-1200 

rapid deterioration. The motor must be carefully protected from 
water, too, since electricity readily leaks over moist surfaces and 
not only causes shock (p. 167), but sometimes damages the equip- 
ment. It may seem needless to urge care in preventing nails or 
similar obstructions from entering the motor casing, but extensive 
experience shows that this quite often happens. When the motor 
is running it acts as a magnet and, if loose nails are very near it, 



Unit of Service 


Hours 


necessary to 


equal 1 KWH of energy 


8 


- 2 


hrs. 


1 


- % 


hr. 




- 2 


hrs. 


3 


- 2 


hrs. 


70 


-14 


hrs. 


16 


-11 


hrs. 


5 


- 1% 


hrs. 


10 


- 2% 


hrs. 


4 


■ 2 


hrs. 


50 


-10 


hrs. 




- 1% 


hrs. 


10 


- 2% 


hrs. 


2 


- % 


hrs. 


2 


• 1% hrs. 


1 ■ 


y 2 


hr. 




- 2 


hrs. 


20 


-14 


hrs. 


1%- 


y 2 


hr. 


20 


-10 


hrs. 


7 


- 1 


hrs. 


2 


- 2/5 


hrs. 


7 


■ 2 


hrs. 


%■ 


1/5 


hr. 


2 


- % 


hrs. 


100 


-50 


hrs. 


4 


' iy 2 


hrs. 


3 


■ 2% 


hrs. 


10 


- 5 


hrs. 




- 2 


hrs. 


2% 


- 2 


hrs. 


2% 


- iy 2 hrs. 




- 4 


hrs. 




3 


hrs. 


% 


• 1% 


hrs. 



176 THE BUSINESS OF THE HOUSEHOLD 

they may be drawn inside the case and become jammed between 
the revolving and stationary parts. This may either scrape the 
covering off wires and provide an accidental path for the flow of 
current which will destroy the motor, or it may bend the shaft or 
other mechanical parts so that the machine is spoiled. When not 
in rise it is well to cover motors to exclude dust, and in general the 
same care should be given this apparatus that is extended to other 
parts of the home equipment of equal value. Keep the motor in 
a dry location where it will not absorb dampness. With such atten- 
tion the motors will prove invaluable servants, always ready for 
work, starting at the touch of a switch and performing quietly and 
efficiently as long as you desire. 

Conclusion. — All household applications of electricity have 
been developed entirely in the last 35 or 40 years. During this time 
it has taken its position as one of the most indispensable elements 
of effective household operation. The rate of advance is increasing 
continuously. It should be made a part of every household program, 
therefore, to visit the showrooms of the central company from time 
to time, to keep in touch with electrical advance and to make full 
use of the advisory service offered by the local company. 

QUESTIONS 

1. What are the advantages, if any, of electricity over gas? Of gas, if any, 

over electricity? 

2. In what way does an electric meter differ from a gas meter? 

3. What is meant by a watt? A watt hour? A kilowatt hour? 

4. What is a fuse? A fuse box? Where is the latter generally located 

in a house? 

5. What are the best sizes of electric globes for use in the home? 

PROBLEMS AND DEMONSTRATIONS 

1. Give some "Safety First" rules for handling electric appliances. 

2. Find what rate is charged for electricity in your community. 

3. Secure and explain a monthly service bill. 

4. A customer used a maximum of 12 KWH at a 10 cent rate for the first 

30 hrs., 10 KWH at a 6 cent rate for second 30 hrs., and was given a 
discount of 1 cent per KWH for each portion. What was the amount 
of the bill? 

REFERENCES 

Anderson, F. I., Electricity for the Farm. The Macmillan Co. 
Koester, F., Electricity for the Farm and Home. Sturgis & Walton Co. 
Lancaster, E. W., Electric Cooking, Heating, and Cleaning. D. Van 
Nostrand Co. 



CHAPTEK XV 

TAXES 

The governments of the country at large, the state, the county, 
the township, the independent school district and those of the city, 
town and village are supported by money raised through taxation. 
Each state fixes the limit of taxes that may be levied within the 
state. Taxes are assessed for specific purposes, such as maintaining 
public schools, fire and police forces, and the building and main- 
taining of roads in addition to paying the wages and salaries 
of public employees. The money assessed and collected for any 
specific purpose cannot be diverted from that particular purpose. 
For example, the amount collected as school-tax cannot be used for 
the maintenance of public roads. 

There are two general forms of taxation in every state: that 
which is levied on real estate, which includes buildings, and that 
which is levied on personal property, such as automobiles, house- 
hold furniture, stocksi and bonds and money. There are many other 
kinds of taxes, chief in interest among them to the individual being 
the Federal income tax. 

Real Estate Taxes. — The amount necessary to be raised to meet 
all public expenses is estimated by the governing unit. Officers 
called assessors visit during the year each home and each piece of 
property within the taxable district, and estimate the value of the 
real estate, the buildings and improvements thereon, together with 
the value of personal property owned by the citizens. 

The amount necessary to be raised is then divided into the total 
value of the assessable property found, and the result is the rate of 
taxation to be levied. For instance, the assessable property of a 
community is $2,500,000 and in order to pay the expenses of the 
community for a year, $50,000 will be required. What will be the 
rate of taxation necessary to raise this amount? $50,000 divided 
by 2,500,000 gives us this rate, which is 2 per cent, of the total 
taxable property. 

The assessors make detailed reports as to the value of all taxable 

property owned by each individual that they can locate. In the 

case of real estate the full value of the property is not generally 

assessed, but a fixed per cent, of that value is taken. As an illustra- 

12 177 



178 



THE BUSINESS OF THE HOUSEHOLD 



tion, say 60 per cent. The rate fixed is then applied to the assessed 
value. 

A man owns a house and lot which the assessors decide are 
worth $10,000. The taxable value has been fixed at 60 per cent, 
of the total value and the rate to be levied is 2 per cent. How 
much will the man have to pay in taxes ? Sixty per cent, of $10,000 
is $6000, and 2 per cent, of $6000 is $120, the amount of tax that 
must be paid. 





























The figures and other wtltlne In 
the column headed " Notification 
of Special Assessments." etc., 
denote the Warrant Number of the 
Special Assessment, and Assess- 

upon the property In this receipt. 


ATTENTION— For General Information cee other side. c^H^-m 

COUNTY COLLECTOR'S OFFICE, ) „. /7jJj& /s_ .<* 10 in 

coon county. \ Chicago, f/L^VY / at 1 lVlo 




Received of 


y. JL ^H^^^T^ - . ■ 






/f//*A *7_ y/^/vw^. ^r. 6iMK^i>aZ^\ 


Office NO. 

' r Kr-S6¥ 




, , , nnrr^xx: .iW 


Cents. 
911, 




in full 0/ State, County, City, Town, School, Road, Park, Drainage and Corporation Taxes, due for the year 














- Notification of 
Special Assessments 


VOL 


DESCRIPTION 


SEC. 


T. 


.. 


LOT 


SUB- 
LOT 


LOT 


BLOCK 


Valuation 


TOTAL TAX 


»•«*■■ 


era. J 







y^rJojd^OnA^L dus^C 




















i 






UGF' 5tMJ^vLdZ^\^ 


19 


HI 


h 


/ 






Z 


. 


;. 


I 














3 


1/ 


S32 


A9- 


« 


-^7 
























5 * \ZSX 
























\ 























































'— 






































































DO NOT DETACH DUPLICATE. 


( 






Int 


erest 


at 


13 


per cent. 




yo 






H. 8.— Receipt not valid unless countersigned bj Paring 
Teller and stamped by Receiving Teller. 








C 


OSt0, 










/<f~ 






A 


MOUNT || RECEIVED BY 


~*~~ — ] 


ra 3d V / 


*3©* 




I 


E>»_ 


M^ 




sf " 




Parties remitting most lend 


Dr.fl 


on 


Chicago. Currency by Express. Post Offlce Order or an 1 




0,d„ 


W " 


bl^o < 


ilUom 1 


..0«Co» 


aeu. Cot 


ntjr Collector 









Fig. 20. — Tax bill, real estate 



Fig. 20 is a copy of one form of Eeal Estate Tax Eeceipt. 

Personal Property Taxes. — The value of all movable property 
belonging to a citizen is assessed, and the rate of taxation is applied 
to the total value fixed by the assessors (Fig. 21). Household prop- 
erty and personal property of all kinds is supposed to be included 
in the returns made to the assessor; this includes live stock, such 
as horses and farm animals. 

There is a great abuse of the personal property returns made 



TAXES 



179 



by many citizens. Property of this kind seldom is returned to the 
assessor at its full or real value. It is so easy to hide money, stocks, 
bonds, mortgages and similar property, or to remove them for a 
time from the state, that dishonest citizens have an opportunity of 
escaping from their just share of taxation, and, as a result, the 
amount of taxable property returned for taxation is just that much 
less, and the burden of taxation becomes heavier, in proportion, for 
the honest tax-payer. It is a notable fact that in nearly every com- 
munity there are citizens of means whose names seldom, if ever, 
appear on the personal property tax-rolls, or, if they do so appear, 
the amount assessed against them is often so small as to cause 
question. For such reasons, there are those who favor the abolition 



OHAS. H. BART LETT, 



TOWN OF RIDGEVILLE 
COUNTY OF COOK 

STATE OF ILLINOIS 



! 



te of Illinois ^ * . ^ * Evaniton, 0L_ 

tteceivwl a^Uk^ad^d 



**.,? 



J918 



r Mo-is>-^uiiJL> *kJ*sxSUZA-seJL-J 



JUtrts*^ . .Dollars and 



_CenU 



for the annual State, County, Town, Road and Bridge, School, Sanitary and Village Corporation Taxe*, due (or the year 1916, 
on Personal Property, situated in said Town, to wit: 




Fig. 21. — Personal tax receipt 



of the personal property tax, substituting for it a direct tax upon 
land and upon incomes. 

Poll Tax. — Poll or head tax, as its name indicates, is a direct 
tax upon each individual citizen. The poll tax in many states 
has come to mean the road tax, or tax used for the maintaining 
of the public highways. It is usually fixed at two dollars, and 
some states provide that a man pay this tax by working one full 
day upon the roads in his district, or by furnishing a day's labor 
for the same purpose, or by paying the same in cash. 

The local community must not only raise sufficient revenue to 
pay for its own expenses, but it must also contribute its share of the 
county and state tax. 

General Tax Exemptions. — A certain proportion of personal 
property is usually exempt from taxation, the amount varying in 



180 THE BUSINESS OF THE HOUSEHOLD 

the different states. It may be $50 to $1000, as is the case in some 
states under certain conditions. The exemption may perhaps apply 
to widows, minor female orphans, unmarried women, war veterans, 
or to mechanics' and farmers' tools, or to household furniture. 

The property of the government, state, county and city is also 
exempt from taxation, as are cemeteries, charitable institutions, 
libraries, religious societies and educational institutions, providing 
the property held by such organizations is used only for the purpose 
for which they were formed. 

For the reasons stated in the last paragraph, prospective pur- 
chasers of real estate should ascertain the amount of such untaxable 
property in the taxing district in which the real estate is located, 
as the burden of taxation may thus be unevenly distributed. 

Where Taxes are Payable. — Aside from the income tax, those 
levied by the county, or by the state through the county, are payable 
at the office of the county treasurer at the courthouse at the county 
seat. City taxes are payable at the office of the city treasurer. 
Town, school, and other local taxes are payable to local collectors. 

When Due. — The date of the levying of taxes and the maturity 
of the same varies in different states. After the tax is due an 
interest penalty is added to the original tax, sometimes 1 per cent. 
a month, and if the tax is not paid by a certain date the property 
is advertised to be sold for taxes, and then in due time the prop- 
erty is sold at public sale and a Tax Sale Certificate is issued to 
the purchaser. Up to this time the owner may pay the tax, but 
he must also pay the interest required from the date the tax was 
due, and also any penalty or cost allowed by the law of the state. 
If this is not done the purchaser and holder of the Tax Sale Certifi- 
cate must hold the same for a certain period fixed by statute in 
order to give the owner another opportunity to redeem his property, 
but if at the end of the period fixed by the state the owner does not 
redeem, the proper official issues to the holder of the certificate a 
Tax Deed. The holder of a Tax Deed assumes any incumbrance 
that exists on the property at the time the deed was issued. There 
are various technicalities involved that differ in various states, and 
the question of the validity of Tax Deeds has long been a mooted 
one in the various courts. Those who buy Tax Certificates usually 
do so for the sake of the high rate of interest allowed, rather than 
with any expectation of securing title to property. 

Boards of Review. — Appeal may be made from the assessments 



TAXES 181 

levied by the assessors to certain legal bodies, such a "Boards 
of Keview." If the assessment is thought too high by the owner 
of the property such a board, on appeal, will investigate the con- 
tentions of the owner and re-examine the property if necessary, 
and if they find the assessment is too high, or if a mistake has been 
made in the same, the assessment will be lowered or corrected as 
the case may be. 

Paying Taxes. — One should be sure that the description of the 
property mentioned in a tax receipt corresponds with the correct 
legal description, and that the proper names are inserted. If one 
pays taxes by mistake upon a wrong description there is no 
recourse, unless it be through the courts. Some other important 
points regarding tax payments are suggested by the following 
information which is printed on the back of tax receipts issued by 
Cook County, Illinois, and while specifically it applies to this one 
county, it may apply in some respects to any county. 

"1. Real Estate taxes are not assessed in owner's name nor by house 
number. When writing for bills or for information, you must give the legal 
description : 

Subdivision* Section. Town Range. Lot. Sub-lot. Lot. Block. 

"2. Examine bills carefully before paying them. See that all legal descrip- 
tions are correct; that they cover ALL property on which you wish to pay and 
no other. The County Collector is not responsible for payments made on 
wrong property. 

"3. Corrections should be made on both the original and duplicate bills. 
Do not detach duplicate from original. 

"4. Special assessments and installments due each year are payable to 
City and Village collectors until March 10th, and to this Office after April 1st. 

"5. On general taxes a penalty of 1 per cent, is charged after May 1st, 
2 per cent, after June 1st, 3 per cent, after July 1st, and so on, until paid. In 
addition to this advertising and copying costs of 19 cents for each lot or 
part of lot, and 29 cents for each tract of land, are added to unpaid general 
taxes and special assessments early in May. 

"6. Make remittances payable to William L. O'Connell, County Collector, 
and enclose tax bills and return postage. All remittances are at the risk of 
the sender. 

"7. Be sure and give your name and proper post office address. 

"8. Receipts are held ten days, and during the rush period a little longer, 
to permit verification by our Auditors. 

"9. The sale of unpaid taxes begins early in August. 

"10. For information about tax sales or back taxes, write to the County 
Clerk. This Office has only the tax books for the current year. 

"11. For information about valuations, write to the Board of Assessors." 

The taxing body is not required to notify a person that his taxes 
are due, but it is assumed that everyone knows when they are due 
and will appear at the proper place to ascertain the amount due, 



182 THE BUSINESS OF THE HOUSEHOLD 

and to pay the same. If notice is sent tax-payers it is usually as 
a matter of courtesy. 

If in doubt in regard to one's income tax the local postoffice or 
bank will probably be able to give the necessary information. In- 
formation regarding city taxes should be sought at the office of the 
city treasurer, and regarding county and state taxes at the office 
of the county treasurer at the county seat. 

Special Taxes. — The Federal government also levies taxes in 
the form of duties upon certain imports and also upon certain 
articles raised or manufactured in this country, such as tobacco 
products. The latter taxes are called Internal Eevenue taxes. 

During emergencies, as war, the Government levies special taxes, 
such as a stamp tax on legal papers, notes, checks, mortgages, etc. 
The Income Tax of the Federal government, and in certain states, 
is a recent innovation. 

The various states, as well as political subdivisions, such as coun- 
ties, and also towns and cities, have various forms of special taxation 
for the purpose of raising money to help defray the expenses of 
government. Among such forms for taxation may be mentioned 
the tax placed upon certain businesses in cities, such as the fee for 
conducting an employment agency, which tax is generally spoken 
of as a license j also the wheel tax on automobiles, carriages, wagons 
and trucks. Another form is the dog tax, which is generally levied 
more as a possible abatement of what might become a public 
nuisance rather than for revenue. 

Some Objections to Present Schemes of Taxation. — The 
difficulty of securing honest returns of personal property taxes, and 
the resultant burden upon the honest tax-payer has already been 
mentioned. Another objection, however, has been raised against 
present methods of real estate taxation. 

An industrious citizen, after years of careful saving perhaps, 
purchases a vacant lot. Values of real estate in the entire neigh- 
borhood may have been lowered as the result of this idle lot, which 
has perhaps grown to weeds or been used as a dumping-ground. 
In time, the purchaser of the lot invests his later savings in build- 
ing a home upon this lot. The new house, with the now graded 
lot, perhaps laid off into lawns and gardens, is a direct asset to the 
neighborhood, and values begin to go up. The builder has rendered 
a distinct and valuable service to the community, but he is virtually 
taxed for making the improvement. The more he improves his 



TAXES 183 

property the more will he be taxed, and the more he improves it 
the greater will be the rise of assessable property in the neighbor- 
hood ; for, as the latter is benefited, values go up and taxes increase. 
Another individual revolutionizes an entire district by erecting a 
costly building upon a piece of property. Values in the neighbor- 
hood go up as the result of this man's courage and industry. This 
public benefactor is assessed heavily, while a neighbor who for years 
may have selfishly refused to improve a vacant piece of property, or 
who may have refused to keep in decent repair some old structure 
that already has depreciated neighboring property, suddenly finds 
his property increased in value many fold as the result of the 
improvement of the other party. Instead of having a piece of land 
worth $5000 the latter may find it has raised in value to $50,000, 
and all without any effort on his part. He has done nothing to 
earn this difference of $45,000. Such differences are called "un- 
earned increment." The new rate of taxation charged against this 
unearned increment would be pitifully small compared with the 
net profit held by this selfish citizen, who has waited years perhaps 
for others to invest their money and make his own property really 
valuable. Such facts as these illustrations are the basis for a 
demand for relatively heavier land taxes in cities, and relatively 
lighter taxes on buildings, and also for the "Single Tax" on land 
values. 

The Single Tax. — The Single Tax, if adopted, would mean that 
all taxation would be based upon land values, irrespective of build- 
ings, and no taxes would be levied on buildings. By this scheme a 
person would not be taxed for his efforts to improve his own 
interests, which in turn enhance the values of neighboring property. 
It also means that "unearned increment" would bear its proper 
share of taxation. If a new million-dollar hotel converted a run- 
down residence street into an active business street, the owners 
of the land on that street would be taxed in about the same pro- 
portion as the owner of the lot upon which the hotel has been built. 
While economists hold the land tax as a sole tax to be an impractical 
scheme, many of them are favoring relatively heavier taxes on urban 
land than on buildings. 

Income Tax. — The abuse of the personal tax system has perhaps 
done much to bring about the income tax, which is a tax levied by 
the government, and, similarly, by a few states, upon the income 
of its citizens. It has only been within the last few years that 



184 THE BUSINESS OF THE HOUSEHOLD 

citizens of this country have been compelled to pay an income tax 
to the Federal government, although for some time such taxes have 
been levied in other countries. The amount levied in this country, 
however, except for its war increase, is the lowest income tax assessed 
by any country. Advocates of the income tax claim that it equalizes 
the burden of taxation, in that those possessing the greater pro- 
portion of the wealth of the country must assume the larger part. 

There is exempted from income tax a personal exemption for 
the unmarried person, and for the married couple, and there is also 
exempted life insurance paid on the death of a policyholder and 
payments made to the insured on life insurance contracts such as 
annuities and endowments, gifts and bequests, and the compensa- 
tion of employes of a state or its political tsub divisions. 

In order to find net income subject to taxation, there is sub- 
tracted from the total or gross income interest paid on indebted- 
ness within the year; necessary expenses of carrying on business; 
losses actually sustained during the year that are not compensated 
for by insurance; reasonable wear and tear, and debts that prove 
during the year to be worthless and uncollectible. But family or 
personal living expenses, or payments made for improvements, or 
for new buildings or that which increases the value of property 
cannot be deducted from the income. 

Those with incomes subject to taxation, must file returns with 
the internal revenue collector, showing source) of income and the 
deductions' allowed; this "return" must be made if one's income 
exceeds the exemption, even if the exemptions and reductions make 
one not liable for any tax upon the income. Failure to make return, 
and fraudulent returns are punishable by fines. Eeturns must be 
made on official blanks to the United States District Revenue Col- 
lector, and payment of the tax must be made to him. 

Inheritance Tax. — In recent years there has been a tendency 
on the part of various states to pass laws taxing inheritances. 

Such taxes usually are at a higher rate for large estates and a 
minimum amount is exempted from taxation. Property going to 
distant relatives, or persons not related to the decedent, is often 
taxed at a higher rate than that passing to immediate relations. 
The great increase in private fortunes and the centralization of 
wealth in the hands of a comparatively small number of individuals 
appears to be a menace to the ultimate welfare of the majority of 
citizens, and this form of taxation was devised, not only for pur- 



TAXES 185 

poses of revenue, but also to reduce the size of individual fortunes, 
and perhaps to distribute them in forms that might directly benefit 
the state at large. Wealth left for charitable purposes or as bene- 
factions to the community at large is generally exempt from this 
form of taxation. Again, it is supposed that heavy inheritance 
taxes may induce the wealthy to make some distribution of large 
estates during their life-time, which will serve to break up vast 
accumulations. It is not beyond the range of possibility that the 
rate of inheritance tax may be advanced so as to check the cen- 
tralization in one family of mammoth fortunes. 

QUESTIONS 

1. What is the principal duty of an internal revenue collector? 

2. What is meant by the Single Tax ? 

3. What is meant by Personal Property Taxes ? What do Real Estate Taxes 

include? What is the Poll Tax? 

4. What is an "Assessor"? How is the rate of taxation determined? 

5. What objections can you name to our present forms of taxation? 

6. What is meant by "Unearned increment" ? Can you cite an illustration 

of this in your community? 

7. Explain the purpose of the Income Tax. 

8. What is a Tax Certificate? A Tax Deed? 

9. What war taxes are now assessed ? 

10. What exemptions are granted under the Federal Income Tax Law? 

11. What are the rates of taxation under this law? 

PROBLEMS AND DEMONSTRATIONS 

1. Where is the office of the Collector for your district? 

2. Who is the County Treasurer of your county and where is his office? 

The City Treasurer? 

3. Secure a copy of a tax receipt and study it carefully. 

4. When are taxes due in your county ? When must they be paid ? What 

is the penalty for not paying them when due? 

5. If possible, secure a Personal Property Schedule and fill it out. 

6. Does your state levy an Income Tax? An inheritance tax? 

7. Name the forms of taxation that obtain in your city or county. Are 

Poll Taxes levied in your county? 

8. What body constitute the Board of Review in your county? 

9. What are the personal tax exemptions in your state? 

10. What real estate is exempt from taxation in your community? 

11. A city is obliged to raise $50,000 in taxes with which to pay its expenses 

for the coming year. The value of taxable property is $4,000,000. What 
will be the tax rate? 

12. Mr. Franklin owns property to the value of $8000 and the tax rate, based 

upon 20 per cent, of this value, is $12.50 per thousand dollars; what 
will be his taxes? 

13. Mr. Jones has an annual salary of $3000. His wife has an income of 

$2000 a year. Is Mr. Jones subject to the Federal Income tax? If so 
what will be the amount Mr. Jones must pay ? ' 



186 THE BUSINESS OF THE HOUSEHOLD 

14. Mr. Law has a gross income of $20,000 a year. Last year he was com- 

pelled to write off $5000 from his books as worthless debts. His wife 
has an annual income of $10,000 a year. What Federal income tax 
will Mr. Law have to pay? 

15. Get a "return" blank for the Federal income tax from your local post- 

master and explain the entries called for. 

THEMES FOR DEBATE 
Resolved: 

1. That a proper inheritance tax is necessary for the preservation of a 

Democracy. 

2. That the Single Tax is the most just and logical system of taxation. 

3. That tax exemptions should be allowed for each dependent child in a 

family. 

4. That unmarried men and women competing in the business world with 

married men should be subject to a special tax. 

REFERENCE 
Fillebeown, Taxation. A. C. McClurg & Company. 



CHAPTER XVI 

FIRE INSURANCE 

The first fire insurance company in this country was organized in 
Philadelphia in 1752, with Benjamin Franklin as one of its pro- 
moters. This company is still in existence. There are now over 
six hundred fire insurance companies doing business in the United 
States, but about fifty of these companies carry nearly a quarter of 
the entire amount of insurance in force. 

This country has witnessed four great fires. Chicago, in 1871, 
the loss amounting to 96 million dollars; Boston, in 1872, loss 52 
millions ; and the comparatively recent fires at Baltimore entailing 
a loss of 60 millions, and at San Francisco of 175 millions. There 
is probably no country in which the fire loss is so great as it is in 
the United States. This has largely been due to the predominance 
of wooden structures, carelessness in construction and lack of proper 
protection from fire. 

Terms Used. — Such terms as "policy" and "premium" in fire 
insurance have the same meaning as in life insurance. The policy 
is a contract made between the insurance company and the person 
who pays for the insurance. The premium is the amount paid at 
certain intervals by a person in return for protection or other bene- 
fits guaranteed to him as the holder of the policy. 

Premiums in fire insurance, instead of being based upon the 
year, are based upon the term of protection covered by the policy. 
The amount of the premium is not the same year by year during 
the life of a policy, as is the case in life insurance, but varies accord- 
ing to the term of the policy. The premium fox a single year's 
fire insurance, for instance, might be $7.50 for $1000, but if the 
policy was written for three years, or five years, the annual cost 
would be less in proportion. 

In fire insurance the term "rate" is much used, which is merely 
the basis for determining the amount of the premium. Fire insur- 
ance is charged for at so much per hundred dollars. The rate, for 
instance, might be 45 cents per hundred, which would make a 
thousand dollar policy cost $4.50. 

Standard Policies. — At one time the policies of the various 

187 



188 THE BUSINESS OF THE HOUSEHOLD 

companies differed in many respects, but in 1875 Massachusetts 
required that all companies doing business in the state must use 
a standard form of policy, and in 1886 New York adopted a similar 
form, and since then practically all companies use what is known 
as a "standard" policy. 

"Valued" Policies. — About twenty states have passed laws 
requiring a policy that will compel a company to pay the full 
amount of a loss if the amount of the policy is in excess of such 
loss, regardless of any other insurance the insured may carry, pro- 
viding there is no evidence of fraud on the part of the insured. 
If a building valued at $10,000 is insured for $5000 and suffers a 
loss of $3000 by fire, under such a valued policy, the company must 
pay the full loss, $3000. In some states depreciation in the prop- 
erty may be deducted from the amount due. 

In case of loss, if a building were covered by three policies in 
different companies for one thousand dollars each, and if the loss 
sustained only amounted to fifteen hundred dollars, each company 
would pay its proportionate share of the loss, which, in this case, 
would be five hundred dollars each. If one company held a policy 
for two thousand dollars and another a policy for one thousand 
dollars, the company holding the larger policy would pay the larger 
per cent, of the loss. 

Co-Insurance Clauses. — Wherever permitted by law to do so 
insurance companies generally insist upon a co-insurance clause in 
their policies, which requires an owner to insure his property up 
to 80 per cent, of its value, in order to get the full return for his 
loss ; if he does not carry that proportion of insurance he is figured 
as assuming himself the risk for the difference between this 80 
per cent, and the actual amount for which he is insured, that is, 
he becomes a co-insurer with the company. As an illustration, if 
property valued at $10,000 is insured at $8000, this represents 80 
per cent, of its value, and should a loss by fire equal $3,000 the 
insured would be paid the latter amount by the insurance com- 
pany. If, however, the original insurance was only $5000 and 
the loss $3000 the insured would not receive the amount of the 
loss under such a clause, as he is supposed to carry 80 per cent, 
of the value in insurance, whereas he only has 50 per cent, insured. 
Not having the requisite amount of insurance in force he is sup- 
posed to be carrying his own risk for the difference between the 
80 per cent., which would be $8000, and the face of the policy, 



FIRE INSURANCE 189 

in this case, $5000. In other words, the owner is supposed, in this 
instance, to carry at his own risk $3000 worth of the insurance. 

The owner's risk would represent three-eighths and the insur- 
ance company's five-eighths, so the amount paid the insured on a 
$3000 loss under such circumstances would be $1875. 

In taking out fire insurance one should ascertain if the laws of 
the state permit of a "co-insurance clause/' or whether they demand 
a "valued policy clause;" and notice the type of policy you have. 
The co-insurance clause, however, does not generally apply to 
dwellings. 

Buildings. — Buildings are insured against loss or partial loss 
by fire, or by damage sustained by water in putting out a fire. Loss 
by wind storms and tornadoes is not included in the usual fire 
insurance policy. A special policy is written to cover such con- 
tingencies. Loss by lightning will be assumed by all companies by 
endorsement. 

The rate charged for fire insurance depends, in part, upon 
the character and construction of the building, whether frame, 
stucco, brick or stone; shingle roof, slate or other fire-proof roof; 
and also upon its location in relation to other buildings, and to 
the water supply. A frame building within a few feet of another 
frame building would bring a higher rate than a frame building 
standing by itself, or than a brick building, as in the latter case the 
danger from fire would be less. The purpose for which a building 
is used is also taken into consideration. A munitions factory, 
where the danger from explosion would be great, would demand 
an almost prohibitive rate. 

Policies generally prohibit the storing of explosives, and limit 
the amount of chemicals and kerosene that may be stored in or near 
a building covered by insurance. 

Privilege to store gasoline or naphtha must be obtained by special 
endorsement. 

Vacating Insured Property. — If a building becomes vacant it 
is necessary to secure a special vacancy clause from the insurance 
company to be attached to the policy, Iso in moving from an in- 
sured residence the owner should procure from the insurance com- 
pany such a vacancy clause. This is generally required within ten 
days after a building is vacated. If such a clause is not issued the 
policy is void. In some states occupancy of the building for a 
few weeks during the year may make insurance possible, 



190 THE BUSINESS OF THE HOUSEHOLD 

Amount of Insurance. — The amount of insurance that a com- 
pany will accept upon a building depends upon its value, its con- 
struction and its location. If the risk is too great, or more than 
one company might be willing to assume, it is customary to divide 
the risk by apportioning the amount of insurance among two or 
more companies. 

Adjustment of Losses. — If a loss by fire is not a total loss 
insurance adjusters examine the property and estimate the loss 
sustained, and that part of the full policy is paid the insured. Most 
policies provide that the company may, if it desires, replace the 
building destroyed or repair the damage sustained in place of paying 
the cash to cover the loss. This is another protection against fraud. 

Insurance of Mortgaged Property. — When money is loaned 
on a building, or other personal property, an insurance policy is 
generally required to protect the lender. A clause in such a policy 
generally reads "payable to the mortgagee as his interests may 
appear." So long as insured property is encumbered by a mortgage 
such a clause must be a part of the policy, although the total insur- 
ance is much more than the amount of the encumbrance. In case 
of loss, any money left after paying off the encumbrances would go 
to the owner. 

The interest of the owner, as well as that of the mortgagee, 
should be protected by insurance. 

Furniture Insurance. — Every home should carry insurance to 
cover the value of the furniture and fittings. It would be a heavy 
burden for any family to replace at any one time the entire furni- 
ture and furnishings of a home. 

For this purpose it is desirable that a Family Invoice be kept. 
In this invoice, on cards, or in a book, should be written the name 
of every important piece of furniture, every valuable picture and 
rug in the house. If possible, the date of purchase should be 
entered, as the age of an article would be considered by an adjuster 
in estimating a loss. The price paid or the value should also be 
entered. 

Although no company requires a list of articles thus insured, 
it would be an added protection to make a copy of such a list. A form 
for such an inventory page is shown in another chapter. Such an 
inventory should be kept, of course, away from home where it would 
not be destroyed by a fire that destroyed the property inventoried. 

If a family moves, the change of address should be recorded with 



FIRE INSURANCE 191 

the agent issuing the insurance, so that the property covered by the 
policy may continue to be protected and signed permission secured 
from the agent. 

QUESTIONS 

1. What is meant by a policy? 

2. By the term "premium"? 

3. What is meant by "Rate"? 

4. Would an insurance policy cost any less in proportion for three years 

than for one year ? 

5. What factors determine the rate charged for fire insurance? 

6. Which would cost the most to insure, a frame building, a stucco house 

or a brick building ? 

7. Which would probably cost the most to insure, a frame residence be- 

tween two other frame residences, each one thirty feet from the in- 
sured structure, or a frame house on a corner, and fifty feet on the 
other exposure from the nearest dwelling? 

8. What is meant by a "valued policy"? Does the law of your state pro- 

vide for such. a policy? 

9. What is meant by a "co-insurance clause"? Does the law of your state 

permit of such a clause in fire insurance policies? 

10. Procure sample fire insurance policy and look over carefully its prin- 

cipal features? 

11. What is meant by a "mortgage clause" in a fire insurance policy? 

12. If not living in a rented house or apartment find out if the building is 

insured. 

13. Ascertain if your family carries insurance on household furniture. 

14. How much would it cost per hundred to insure your house or apart- 

ment ? 

15. Your furniture and furnishings? 

PROBLEMS AND DEMONSTRATIONS 

1. A building valued at $10,000 is insured for $8,000. The policy 

which is "valued" contains a mortgage clause, as the building is 
mortgaged for $5,000. In case the building was totally destroyed by 
fire, how much insurance would the owner receive? 

2. A church is insured for $5,000 at the rate of 75 cents per hundred for 

one year. What is the premium? 
.3. A residence was insured for $2,000 for one year at 75 cents per 

hundred. At the expiration of the policy, it was reinsured for the 

same amount at the rate of 50 cents per hundred for five years. How 

much was saved by insuring for a five-year-period, rather than year 

by year for the same length of time ? 
4. A house was insured for $2,000 for one year, and the premium was 

$20.00. What was the rate charged per hundred? 
.5. A store building valued at $20,000 was insured for 80 per cent, of its 

value at a rate of $1.20 per hundred for five years. How much was 

the premium ? 

REFERENCES 

Hardy and Field, Insurance and Real Estate. Alexander Hamilton 

Institute, New York. 
IHuebenee, S. S., Property Insurance. Apple ton. 



CHAPTEK XVII 
FOOD FOR THE FAMILY 

Experience has shown that an adequate diet cannot be one- 
sided. Nature rebels at monotony in food. The chemical and 
physiological laboratories have demonstrated why such a diet will 
not promote health and normal development. 

Needs of the Body. — Food is needed by the body for several 
reasons : 

1. To build new tissue especially in the growing child and 
to repair broken-down tissue. The body tissue is continually being 
used up in the work of the body, and must be constantly renewed 
as part of the normal life process. During the years of growth and 
after special bodily strain as in illness, special attention must be 
given to the supply of foods rich in protein — the tissue-building 
material. 

2. To furnish energy for work and heat to keep the body warm. 
The normal body temperature is 98 degrees, Fahrenheit. If we are 
cold, we shiver, i.e., contract the muscles, and by this exercise are 
warmed. This uses up more food. The involuntary muscular work 
that is going on within us all of the time requires energy. The 
heart expands and contracts to pump blood through our bodies, 
the chest rises and falls to supply air to the lungs and there is 
almost continued movement in the alimentary canal where foods 
are being digested and the products moved along. The unconscious, 
external movements, like the winking of the eyelids and the con- 
scious movements of our hands in writing, playing the piano, or 
knitting, all require energy, which must be obtained from our food. 

3. Food as a body regulator. Some balance wheel is needed 
so that the body processes, such as respiration, digestion and the 
circulation of the blood, will go on smoothly. 

Food is to the body what gasoline is to the engine — and 
more — because our food can both build up and repair our bodies 
as well as furnish the motive power, while help from without is 
needed to renovate an automobile. 

Let us follow the suggested classification of food materials as 
192 



FOOD FOR THE FAMILY 193 

given in Chapter VI and see what the relation of each is to the 
human body. 

(a) Meat and Meat-like Foods. — Such foods are rich in pro- 
tein, the material which supplies nitrogen to the body, builds it 
up and renews the wasted tissues. This substance is especially 
needed by children for growth, but is also needed by all to replace 
worn-out body structures. 

This group serves also as a source of body fuel, but is much 
too expensive to be largely used for such a purpose and should be 
conserved. Dr. Graham Lusk says that protein taken in excess 
" represents luxury and waste." The amount and kind of tissue- 
builder needed depends upon the age, size, sex, and occupation of 
the person. We do not need so large an amount as has formerly 
been thought necessary. There are possible dangers in giving the 
body more protein than it can safely take care of. It is usually 
estimated that 90-100 grams (2.86-3.5 ounces) of protein ob- 
tained from a varied diet gives a safe daily standard for a healthy, 
vigorous man, weighing 150 pounds, and that 70 grams (2.5 
ounces) is needed for a woman in good health and of average size. 1 

Meat, besides being a source of protein, is important on account 
of its extractives which stimulate the flow of the digestive juices. 
That we need not be afraid to reduce the protein in our diet is 
shown, by a statement regarding the food situation in England, 
that " The British have suffered no hardships in the present reduc- 
tion of their meat ration." 

For children, whole milk should be the chief source of the daily 
protein, and milk is a very desirable food for adults. For other 
sources, see Chapter VI. 

(b) Grain Foods, Sweets and Fats. — Food from these three 
groups is the principal source of energy. Neither sweets nor fats 
can build tissue. Some grain foods as rye, barley and oats can build 
tissue, but most of them are relatively poor in protein, even when 
the entire grain is utilized. The carbohydrates, that is, grain foods 
and sweets, are usually cheaper than fats and should, therefore, 
be depended upon as the chief source of energy. 

Fats, though not so abundant in the diet, are important not only 
for the energy they supply, but also because some of them insure 
the presence of certain substances, described later, which are present 
in solution in animal fats. 

1 Ten Lessons on Food Conservation — U. S. Food Administration, 1917. 
13 



194 



THE BUSINESS OF THE HOUSEHOLD 



Fats as a source of energy supply per unit two and one-fourth 
as much heat as does the same amount of carbohydrates. Their 
high cost and comparative difficulty of digestion make them less 
available than carbohydrates as a source of heat. Fat also serves 
another valuable function in the diet, namely, that of making food 
more palatable by its flavor. 

The amount of fat should be from 40 to 60 grams as purchased 
(1.41 to 2.12 ounces) per day per person. 

(c) , Fruits and Vegetables — These products are important for 
several reasons. They are the chief source of the mineral matter 
which keeps up the general " tone " of the body and builds the bony 
structure — the skeleton and teeth. Mineral matter is also fur- 
nished by milk, eggs, fish and lean beef. The three principal min- 
erals are iron, phosphorus and lime. The bony structure of the 
body is largely lime ; the red color of the blood, as well as its power 
to carry oxygen to the cells of the body, is due to iron; while the 
phosphorus found in each cell helps to convert food into body tissue, 
heat and energy. The following list gives the foods rich in these 
minerals : 

FOODS RICH IN THE THREE PRINCIPAL MINERALS 2 

Iron 



Lima beans (dried) 


Oatmeal 


Sweet corn 


Navy beans 


Raisins 


Dandelion greens 


Peas (dried) 


Prunes 


Walnuts 


Entire wheat flour 


String beans 


Peanuts 


Spinach 


Potatoes 


Grapes 


Lean beef 


Cornmeal 


Honey 


Eggs 


Cabbage 
Phosphorus 


Lentils 


Peas (dried) 


Oatmeal 


Potatoes 


Navy beans 


Lentils 


Turnips 


Egg yolk 


Peanuts 


Barley 


Lean beef 


Almonds 


Cocoa 


Milk 


Walnuts 


Dried sweet corn 


Cheese 


Prunes 


Fish 


Entire wheat flour 


Rice 


Dried figs 


Buckwheat flour 


Parsnips 
Lime 


Gooseberries 


Milk 


Oatmeal 


Carrots 


Eggs 


Walnuts 


Oranges 


Cheese 


Peanuts 


Prunes 


Beans 


Parsnips 


Celery 


Peas 


Cauliflower 


Spinach 



2 "Food for the Family," Oregon Agricultural College, Bulletin No. 10. 



FOOD FOR THE FAMILY 195 

Fruit acids give flavor and stimulate appetite. These acids, 
together with the bulk of both fruit and vegetable foods, tend to 
prevent constipation. The human body requires considerable 
" roughage " as the indigestible portions of food are called, in order 
that the alimentary canal may perform its functions. 

(d) Other Necessary Substances. — There are two other sub- 
stances which act as body regulators and growth promoters. Through 
laboratory experiment they have been found to be absolutely neces- 
sary to normal development. Little is known about them except 
that one is soluble in fat and the other is soluble in water. These 
are known also as " Vitamines." 

The " fat-soluble A " substance is less widely distributed and 
is found in milk, eggs, liver and kidney fats, suet and the leaves 
of plants. Butter and egg yolk are excellent sources for it. 

The " water-soluble B " substance is found in nearly all foods, 
except polished rice, fats from either animal or vegetable sources, 
sugars and starches. 

Dr. E. V. McCollum says that almost without exception the seeds 
of plants (cereals) are deficient in this fat-soluble substance. 
Therefore cereals must be supplemented in the diet by leaves of 
plants, whole milk or butter fat. 

Eye-trouble is one of the serious effects found in children whose 
diet lacks this fat-soluble material. In Scandinavia, where chil- 
dren had been fed separator milk, eye-trouble resulted. It was 
found that the infection, unless it had gone too far, could be quickly 
checked by the substitution of whole milk. 

(e) Food Must be Palatable. — Food must not only contain the 
necessary food constituents, but it must also be made attractive and 
palatable. One of the most important roles that meat and sea foods 
play in the diet is due to this characteristic. If the flavor of meat 
can be extended to vegetables and grain foods, good digestion may 
be insured and much money saved. Monotony in the diet, which 
is abhorrent to so many, may also be varied by the expert use of 
flavorings and condiments as well as by the careful use of fats. 
Whether the food looks well, tastes good and thus causes a sense 
of pleasure may often retard or aid digestion. It is largely in the 
skilful preparation and serving of food following the wise choice of 
food materials, that the secret of healthful diet and food economy 
lies. 

Milk and Milk Products. — Milk is a complete food for the 



196 THE BUSINESS OF THE HOUSEHOLD 

young animal and adults should use much more of it than they do. 
Whole milk, skim-milk and cheese contain an abundance of protein. 
There are also very valuable mineral salts in milk, which resemble 
those inorganic substances found in green leaves. Milk, butter 
and cheese are excellent as sources of energy. The growth-pro- 
moting substance, fat-soluble A, is also found in whole milk and 
butter fat. Since grains are deficient in this fat-soluble substance, 
milk makes a good supplementary food for foods made from the 
seeds of plants. It is also palatable and should be found in much 
larger proportions in almost all dietaries. 

With this increasing knowledge of the value of milk, experts 
are everywhere urging its wider use. Dr. Graham Lusk says, " Let 
no family of five persons buy meat until it has bought three quarts 
of milk, the cheapest protein food." Nor need this milk be taken 
raw. It may be used in custards, puddings, creamed dishes, etc. 
Since the fat-soluble substance is in the cream, it is necessary 
to use whole milk to supply it, while for protein only skim-milk 
is necessary. As heat does not injure the body-regulating sub- 
stances, milk may be used in cooked food or as a drink. Those 
who work with the poor and advise dependent families are now 
recommending that as much money be spent for milk as for meat. 

The ideal is that the food of every adult should contain one 
pint of milk a day and that of children 1% pints, or better, one 
quart. 

Value of Water in the Diet. — Water constitutes nearly three- 
fourths of the weight of the body. It acts as a solvent of food 
material and forms an important part of every secretion of the 
body. It is found in nearly all food material, especially in fruits 
and succulent vegetables. It does not yield energy or build tissue, 
but it is not likely to be taken in too large quantities. It may be 
taken at meals as well as between them. 

Another Aspect of the Food Requirements. — We have seen 
what food materials are needed for normal development and have 
considered their effect in the body and their sources. How do we 
estimate the amount of food we need to enable the body to do its 
work? 

The automobile will go just so far on a given amount of gasoline. 
If it has less gasoline it will not run so far. If it has more it will 
run further. Just so with the human body and its food supply. 
Tf we eat food enough to give us the right amount of energy we can 



FOOD FOR THE FAMILY 197 

do our day^s work effectively ; if we do not have enough food we do 
not accomplish our work so well. If we have an oversupply, it is 
stored in the body as fat and muscular tissue, and unlike the engine, 
we do not do our work quite so efficiently. In the case of the auto- 
mobile the energy furnished by the gasoline is measured by horse- 
power; in the case of the human body the energy from the food 
is measured by the calorie or the amount of food which burned as 
fuel will raise the temperature of a cubic centimetre of water one 
degree Centigrade. Every food product, therefore, has its definite 
energy value. One calorie is too small a portion to be conveniently 
reckoned with, so that in practice 100-calories is called the standard. 
Examples of 100-Calorie Portions. — If we have a mental pic- 
ture of 100-calorie portions we may see how nearly it approximates 
the usual amount of foods served. 

APPROXIMATE AMOUNTS OF FOOD TO YIELD 100 CALORIES 

Cooked or flaked breakfast foods %-l% cups 

Milk % cup, whole; iy 8 cups skim 

Cream % cup, thin ; 1 y 3 tablespoons, very 

thick 

Butter, olive oil, or any other kind of 
fat 1 tablespoon 

Bread 1 slice 3 in. x 3% in. x 1 in. 

Uneeda biscuit 4 crackers 

Fresh fruit 1 large orange or apple ; 1 medium 

banana or bunch of grapes; 2 
medium peaches or pears 

Dried fruit 4 or 5 prunes or dates; 2 dozen rais- 
ins; iy 2 large figs 

Eggs 1 exceptionally large; iy 3 medium 

Meat (beef, lamb, mutton, veal, 

chicken) About 2 ounces of cooked lean meat 

Bacon ( cooked crisp ) About y 2 ounce ( 4 small thin slices ) 

Potatoes 1 medium 

Sugar 1 tablespoon granulated; 3% " full- 
size " lumps 

Cocoa ( made with milk ) 2 / s cup 

Cream of bean soup y 2 cup 

Macaroni and cheese . . y 2 cup 

Rice pudding i/ 2 cup 

Ice-cream (made with thin cream) . . . % cup 

Milk sherbet y 4 cup 

Sponge cake 1 large individual cake 

Nuts (shelled almonds, peanuts, pe- 
cans ) About y 2 ounce 

Sweet chocolate . . .< About % ounce 

14 



198 THE BUSINESS OF THE HOUSEHOLD 

The authors in " How to Live " 3 say that " many people eat 
too much; that is, too many calories; some eat too little; that is, 
too few calories." We make the mistake of measuring our food by 
its weight, per pound, or by bulk, per cup, rather than by its fuel 
value or so many calories. Some foods are concentrated, like sugar, 
and contain many more calories per unit than others. It takes a 
pound or more of vegetables, tomatoes, cucumbers and lettuce, 
which are bulky, and have high water content, to equal three and 
one-half cubes of sugar, which is a 100-calorie portion. 

The Daily Energy Requirement. — Energy requirement dif- 
fers with age, size and occupation as does the amount of food mate- 
rials. Greater muscular activity means that more fuel is needed. 
Therefore the person doing sedentary work will require fewer 
calories per day than the lumberman, the mail carrier, farmer or 
soldier. Generally the increase should be chiefly in the fuel foods, 
like fats, cereals and sweets, rather than in the expensive proteins. 
Following is a table which gives the calorie requirement for 24 
hours for a man of average size, say 150 pounds weight: 

DAILY ENERGY REQUIREMENT 

Occupation Calories per man per day 

In bed twenty-four hours 1000-1800 

At rest but sitting most of day 2000-2300 

Work chiefly done sitting 2200-2800 

Work chiefly done standing or walking 2700-3000 

Work requiring muscular strength 3000-3500 

Work requiring very severe effort 4000-6000 

" Nature Counts Every Calorie Carefully." — Consider the 
effect upon your calorie intake of the " bite " between meals. A 
small egg-nog yields about 233 calories. One-fourth a cup of ice- 
cream or sherbet, 1% large figs, 1 tablespoon or a one-inch square 
of fudge and 1 large apple or orange, each yield 100 calories. 
These " bites," together with the accessories, cream, sugar, raisins 
and syrup, eaten at meal-time, all must be taken into the account, 
and by them, the daily calorie intake will be greatly increased. When 
food enough has been taken, to eat another slice of bread is waste 
and a menace to health. 

How to Select Food. — From the foregoing discussion it will 
be seen that the day's food should be chosen so that each type of 



3 



Fisher and Fiske, published by Funk and Wagnalls. 



FOOD FOR THE FAMILY 199 

food material is represented — namely, fruits and vegetables for 
mineral matter; meat and meat-like foods, as eggs, legumes, milk 
and cheese, for growth and repair; cereals or grain food, sweets 
and fat for energy, and such foods included as contain the regulating 
substances, " fat-soluble A " and " water-soluble B." 

We must not forget that some foods in the cereal group contain 
protein and mineral matter, although for convenience they were 
grouped with reference to their major constituent — starch. Pota- 
toes, while mainly valuable for the carbohydrate, starch, also fur- 
nish mineral matter, acids and cellulose. Tubers, like Irish and 
sweet potatoes, contain less fat-soluble A than the leaves of plants, 
like beet greens, spinach and lettuce. Meat usually contains fat 
as well as protein. 

What to Select. — There are a few simple rules which help in 
making out a balanced ration which shall serve the demands of both 
health and economy. 

Because protein foods are the most expensive one should select 
the cheaper forms if such can be done without injury to the food 
value. As was said earlier, less protein in the form of meat can 
be safely eaten b}^ most people. Not more than 30-40 per cent, 
of this tissue-builder should be taken from meat, poultry, fish, 
game, milk and eggs — cereal grains, such as wheat (entire grain), 
oats, barley, rye and corn, should furnish from 25-33 per cent, 
of the total; root vegetables, legumes, succulent vegetables, fruits 
and nuts furnish the remainder. 

Be sure that the day's food also contains the recently found 
accessories, fat-soluble A and water-soluble B. The presence of 
the former is assured by milk, butter-fat, and green-leaved plants, 
such as salads and pot-herbs. Eemember that water-soluble B is 
present in whole grains, fruits and vegetables, as well as in meat, 
milk and egg yolk. 

Rules to Follow in the Selection of Food. — These additional 
rules will help in the selection of food and should be borne in mind 
in planning meals : 

1. Foods should be selected because of their food value, not 
simply because they are cheap, easy to obtain, or happen to suit the 
taste of the family. Likes and dislikes in food are chiefly the 
results of home training. 

2. Plan for the children first. A quart of milk per day is none 
too much for each child. 



200 THE BUSINESS OF THE HOUSEHOLD 

3. Use cereals (flour, meal, rice, cereal breakfast foods, etc.), 
freely. Vary these from day to day in kind and in method of prep- 
aration that the family may not tire of them. 

4. Do not serve the same food in different forms at the same 
meal, as chicken soup and creamed chicken. It is well not to 
duplicate foods or flavors on the same day. 

5. Include in every meal milk and easily digested food for the 
children, invalids and aged. More hearty food may be served for 
vigorous adults. 

6. Serve heavy soups (cream) and heavy desserts (rich pies) 
with a light main course, and vice versa. 

7. Variety gained through methods of cooking, flavoring and 
ways of serving keeps the family content with inevitable repetition 
— as, for example, in the daily serving of potatoes. 

8. Be careful not to serve too much tissue-building material in 
one meal. Eoast beef and cheese souffle would be a bad combination. 

9. Too much starch should be avoided at one meal, as, for ex- 
ample, potatoes and hominy. 

10. " Pernickety " food habits can be avoided if children are 
served proper amounts of food, carefully prepared, and are expected 
to eat it. 

The following skeleton plan 4 gives suggestions for menu 
building : 

PLANS FOR MEALS 

Breakfast Plan 

1. Fruit in some form. 

2. Cereal. 

3. Some muscle-building dish, such as eggs, fish, or small amount of meat. 

4. Some form of bread. 

5. A hot drink. 

Luncheon or Supper Plan 

1. A hot dish such as meat; or a hot meat substitute dish, such as maca- 

roni and cheese; or a cold meat; or a heavy salad; or a cream soup. 

2. Potatoes and bread. 

3. Some form of dessert. 

4. A beverage, if desired. 

Dinner Plan 

1. A light soup, if desired. 

2. Meat. 

3. Potatoes or some other starchy vegetable and some flavor vegetable. 

Bread. 

4. A relish or flavor food, which may be served in the form of a salad. 

5. Dessert. 

6. Beverage, if desired. 

4 "Food for the Family." Bulletin of Oregon Agricultural College. 



FOOD FOR THE FAMILY 



201 



Balancing Menus. — After all that has been said a critical study 
of the following menus will be of value : 



No. I 

Rice soup 

Potatoes 

Macaroni 

Rice pudding and hard 

sauce 
Bread and butter 



No. II 

Creamed pea soup 

Fish 

Meat and poultry 

Peas or beans 

Rye bread 

Mince pie and cheese 

Nuts 



No. Ill 

Vegetable soup 

Meat or poultry 

Rice, potato or hominy 

Spinach 

Tomato salad 

Plain ice-cream 

Oatmeal wafers 



Menu No. I is very high in foods which supply heat. Minerals 
are almost lacking except the small amount in the bread and potato. 
There is practically no protein except in the soup and bread. There 
is too little fat. 

Menu No. II is much too high in tissue-building foods or protein. 
The grains are barely represented and then by rye, which is rich in 
body-building substance. Peas served twice is bad, and the soup is 
too heavy. 

In Menu No. Ill all five food groups are represented, as well 
as fat-soluble A and water-soluble B ; spinach furnishes iron as well 
as bulk. 

Food Economy. — One important item has already been given 
about food economy, namely, save on meat. In the chapter on mar- 
keting there are many helpful suggestions of ways in which the 
housewife can become a scientific buyer. 

A knowledge of the properties of food goes a long way, not 
only toward lessening the expenditure for food, but in ensuring 
safety in the substitution of a cheaper for a more expensive food. 
Honey can be used in place of sugar, as can also molasses, sorghum 
(home-made or commercial), and maple, cane and corn syrups. 
Dates, prunes, figs and raisins as dessert or in cooking furnish 
sugar. Let the farm and town woman plan ahead and raise a variety 
of food materials that she may not be a slave to high prices, as is 
the case with many women living in the city. The backyard garden 
or flock of hens is often a valuable food asset. 

Waste. — This must be watched in every home. 



202 THE BUSINESS OF THE HOUSEHOLD 

Here are a few leaks: 

1. Wastefulness due to false pride in a lavish table. 

2. Thrift in food means providing enough food, neither "too 
little nor too much/' " Do not be ashamed to plan closely." 

3. The larder overstocked, with consequent loss due to deterior- 
ation. This may end in overeating, which is wasteful of food, and 
leads to sickness, which means loss of wages and doctor's bills. 

4. Non-use of left-overs. The good housewife will have few 
left-overs. They must be carefully stored to prevent spoilage, e.g., 
muffins and meat not allowed to dry, nor lettuce to wilt, because 
food once served is even more expensive than when first bought 
on account of the labor and fuel put into its preparation. 

5. Unseasonable foods. Strawberries and green peas in Decem- 
ber and January spell extravagance in most families. When a food 
goes up in price, seek a substitute. Do not entirely taboo fresh 
green vegetables during the winter months. Improved methods of 
transportation make it possible for the family of moderate means 
to have the much-needed lettuce (with its fat-soluble vitamine) when 
the snow is flying. 

6. The purchase of expensive cuts of meat an(J the trimmings, 
fat and bone, left at the market. 

7. Plate waste due to serving more than an individual will eat. 
Encourage the " clean plate." 

8. Waste due to poor cooking. 

9. Buying in small quantities and package goods. 

In conclusion we may say banish from the table unnecessary 
foods and elaborate courses. Make a study of the needs of the 
body, and select the foods to satisfy those needs instead of catering 
to an artificial appetite. Fresh air and exercise will encourage 
an appetite that does not require expensive food for its satisfaction. 

If these few principles are followed, the family food bill will 
be materially reduced. 

The Budget for Food. — The amount allowed for all food 
material, including groceries, meats, fish, dairy products, and also 
ice, need not be much more than ten dollars per month per person, 
or fifteen dollars as a maximum. This will satisfy every body need 
and every normal appetite. Following is a typical expense account 



GOOD FOR THE FAMILY 



203 



for food material for a family averaging three persons a month in 
1916: (In 1920 this budget was more than doubled. In 1922 it 
is about 60% more than in 1916) 

No. of Groceries Meat and Milk and 

Persons Month and Ice Fish Cream Total 

2 January $13.25 $5.31 $2.59 $21.15 

3 February 27.74 8.12 1.62 37.48 

2 March 14.04 5.04 2.58 21.66 

3 April 23.45 4.81 2.42 30.68 

2 May 21.04 1.54 2.48 25.06 

4 June 35.62 2.86 2.16 40.64 

4 July 31.88 3.18 2.48 37.54 

3 August 33.20 4.16 2.79 40.15 

4 September 30.03 6.56 2.70 39.29 

3 October 25.50 4.50 2.48 32.48 

3 November 28.15 5.15 2.70 36.00 

3 December 30.56 5.25 2.79 38.60 

Total $314.46 $56.48 $29.79 $400.73 

Average per month for an average of three persons, $33.39. 

This account does not represent a standard, because of the 
variation in the number in the family. In some of the months 
where two or three are counted for a few days at a time, one or two 
other persons were present. The head of the family was away 
from home part of the time. 

In the city, food may cost more in the summer months because 
of the purchase of fresh vegetables and fruits not available in the 
winter seasons. 

It is only by understanding the values of food that one can buy 
wisely and by making and keeping a monthly account of food ex- 
penditures that one is enabled to know definitely the proper propor- 
tion to allow for each food group. 

The cost of food per capita per day has gradually crept up, 
but even in 1918 with great care it was possible to keep it down 
to 30 cents per person as a minimum, counting children and 
adults together and multiplying this factor by the number in the 
family for family costs. This is less than the ten dollars a month 
just given. Other similar costs are mentioned below. 

Suggested Ranges for the Cost of Raw Food Material: 

30 cents per day per capita, minimum. 

45 cents per day per capita, comfortable. 

60 cents per day per capita allows for variety and some delicacies. 

75 cents per day per capita allows for the selection of the choicest cuts, some 

fruits out of season and other luxuries. 
90 cents-$l per day per capita is the maximum and should be carefully 

scrutinized, for it suggests waste. 



204 THE BUSINESS OF THE HOUSEHOLD 

For a family of four or five, on ten dollars a week for food, the 
following allotment has been suggested: 

$2.50 for grain foods $2.00 for fruits and vegetables 

2.00 for milk 1.50 for fats, sugar and miscella- 

2.00 for meat, eggs, fish neous 

In the May 15, 1918, issue of the Massachusetts Food Adminis- 
tration Bulletin the following amounts of food for a reasonable diet 
were given : 

I 

The following table shows satisfactory quantities of food as pur- 
chased per day for a man at moderate work : 

Richer and More Plain and Cheaper 

Expensive Diet Diet 

Vegetables and fruits From 2% lbs. Down to 1% lbs. 

Milk 8 oz. 8 oz. 

Meats, eggs, cheese, etc. 5 From 14 oz. Down to 6 oz. 

Cereals From 8 oz. Up to 16 oz. 

Sweets From 3 oz. Down to ly 2 oz. 

Fats From 3 oz. Down to 1% oz. 

Four-fifths of these amounts is sufficient for a moderately 
active woman; three and one-third times the amount is a reason- 
able quantity for a family consisting of a moderately active man 
and woman and three children from 3 to 12 years old. 

II 

Another way of estimating a reasonable diet, is by cost. The 
following recommendations are made for expenditure for low cost 
diets : 

1. Spend from one-fourth to one-third of your food money for 
bread, cereals, macaroni, and rice. 

2. Buy at least from one-third to one-half a quart of milk a day 
for each member of the family. 

3. Spend as much for vegetables and fruits together as you do for 
milk. If you use one-half a quart of milk for each member of the 
family, this may not always be possible. Then spend as much for 
vegetables and fruit as one-third of a quart of milk a day would cost. 

4. Spend not more for meat and eggs than for vegetables and 
fruits. Meat and eggs may be. decreased with less harm than any 
of the other foods mentioned. The amount spent for meat may 
decrease as the amount spent for milk increases. 

5 Use two ounces less for every additional half pint of milk. 



FOOD FOR THE FAMILY 205 

III 

Still another statement has been made as follows, for a family 
neither poor nor rich, consisting of three adults and four growing 
children : 

Per Cent, of Total 
Cost of Food 

Meats, poultry and fish 10-15 

Eggs 5-7 

Milk 25-30 

Cheese 2-3 

Butter and other fats 10-12 

Bread, cereals, and other grain products 12-15 

Sugar, molasses and syrups About 3 

Vegetables and fruits 15-18 

The Value of Quick Lunch Portions. — The" following table 
adapted from one compiled by Gephart & Lusk, and given in Fisher 
& Fisk's "How to Live" (reproduced here through the courtesy 
of Funk & Wagnalls Company, publishers, 1916), gives the calorie 
value and price of one order of the articles listed as served in the 
average quick lunch restaurant. WTiile prices have advanced, rela- 
tive food values are probably about as before the war, except as 
a portions " have been reduced : 

No. of Cost 

v„ w/vr n e n An j a calories of one order, 

N ames of Foods in one llquick lunch „ 

order restaurant 

Napoleon 418.6 $0.05 

Crullers 416.6 .05 

Cabinet pudding and vanilla sauce 416.6 .05 

Cocoanut pie 357 .05 

Roast beef sandwich with roll 357 .05 

Bath buns 357 .05 

Bread custard pudding 357 .05 

Pineapple pie 357 .05 

Corn muffins 357 .05 

Apple pie 357 .05 

New England pudding with vanilla sauce 312.5 .05 

Chocolate spiced cakes 312.5 .05 

Walnut layer cake with marshmallow icing 312.5 .05 

Milk crackers 312.5 .05 

Bread pudding with vanilla sauce 312.5 .05 

Fumpkin pie 312.5 .05 

Lamb croquettes and mashed potatoes 833.3 .15 

Coffee cake 277.7 .05 

Rhubarb pie 277.7 .05 

German meat cakes and French fried potatoes .... 833.3 .15 

Old-fashioned molasses cake 277.7 .05 

Lemon pie 277.7 .05 

Vienna roast with French fried potatoes 833.3 .15 

Butter cakes 277.7 .05 



206 THE BUSINESS OF THE HOUSEHOLD 

No. of Cost 
XT r -r, , calories of one order 
Names of Foods in one "quick lunch" 

order restaurant 

Minced ham sandwich 277.7 .05 

Pork and Boston beans 833.3 .15 

Cornmeal cakes with maple cane sirup 500.0 .10 

Ham croquettes 500.0 .10 

Cold rice pudding 277.7 .05 

Ham sandwich with roll 250.0 .05 

Banana layer cake 250.0 .05 

Creamed chipped beef on toast 833.3 .15 

Cocoa 250.0 .05 

Koast beef cutlet with tomato sauce 833.3 .15 

German meat cakes with lyonnaise potatoes 833.3 .15 

Swiss cheese sandwich 250.0 .05 

Boston baked beans 500.0 .10 

Vienna roast, spaghetti and potatoes. 625.0 .15 

Chocolate cornstarch with cream 227.2 .05 

Wheat cakes with maple cane sirup 500.0 .10 

Milk crackers and milk 500.0 .10 

American cheese sandwich 227.2 .05 

New York baked beans 500.0 .10 

Hot cornbread 416.6 .10 

Food Conservation. — The conservation of food material in the 
home, through the avoidance of waste, economizing in the prepara- 
tion and serving of foods, are two factors especially emphasized by 
the U. S. Food Administration. Restaurants and dining-car mana- 
gers have been urged to reduce the size of the food portions served, 
so as to reduce wastage, and of course effect a corresponding reduc- 
tion in prices on the menus. 

The garden movement has already been mentioned, but during 
the years 1917-1918 it assumed great national importance. Every 
family has been urged to have its own garden, and where space 
was not obtainable in the backyard, many cities have, at public 
expense, prepared vacant lots so that such householders might avail 
themselves of the opportunity of having a garden. A few hens 
will often lessen the meat bills ; pigs will eat the unavoidable table 
scraps and then themselves furnish food. 

Many organizations have fostered Canning Clubs as one method 
of reducing the cost of living. A study of substitution, i.e., equally 
valuable but less expensive foods for those that are costly or avail- 
able for overseas, is another problem with which the public has been 
confronted. 

Greater production and a greater conservation of food material, 
combined with better methods of distribution and the municipal 
state or governmental supervision of storage warehouses, produce 



FOOD FOR THE FAMILY 207 

exchanges and price-fixing, represent the problems that must be 
solved in the reduction of food prices. 

The following text was published in the form of a card by the 
U. S. Food Administration for distribution to the general public, 
with the idea of having it hung on the walls of every kitchen. 
The subject matter is well worth the study of every housewife, 
regardless of the fact that the war is now history. 

Save the Wheat. — One wheatless meal a day. Use corn, oat- 
meal, rye, or barley bread and non-wheat breakfast foods. Order 
bread twenty-four hours in advance so your baker will not bake 
beyond his needs. Cut the loaf on the table and only as required. 
Use stale bread for cooking, toast, etc. Eat less cake and pastry. 

Our wheat harvest is far below normal. If each person weekly 
saves one pound of wheat flour, that means 150,000,000 more bushels 
of wheat for the allies to mix in their bread. This will help them 
to save democracy. 

Save the Meat. — Beef, mutton, or pork not more than once a 
day. Use freely vegetables and fish. At the meat meal serve 
smaller portions, and stews instead of steaks. Make made dishes 
of all left-overs. Do this and there will be meat enough for every 
one at a reasonable price. 

We are to-day killing the dairy cows and female calves as the 
result of high prices. Therefore eat less and no young meat. If 
we save an ounce of meat each day per person we will have additional 
supply equal to 2,200,000 cattle. 

Save the Milk. — The children must have milk. Use buttermilk 
and sour milk for cooking and making cottage cheese. Use less 
cream. 

Save the Fats. — We are the world's greatest fat wasters. Fat 
is food. Butter is essential for the growth and health of children. 
Use butter on the table as usual but not in cooking. Other fats are 
as good. Eeduce use of fried foods. Soap contains fats. Do not 
waste it. Make your own washing soap at home out of saved fats. 
Use one-third ounce less per day of animal fat and 375,000 tons will 
be saved yearly. 

Save the Sugar. — Sugar is scarcer. We have used three times 
as much a person as our allies. So there may be enough for all at 
reasonable price; use less candy and sweet drinks. Do not stint 
sugar in putting up fruits and jams. They will save butter. 

If every one in America saves one ounce of sugar daily it means 
1,100,000 tons for the year. 



208 THE BUSINESS OF THE HOUSEHOLD 

Save the Fuel. — Coal comes from a distance and our railways 
are overburdened hauling war material. Help relieve them by 
burning fewer fires. Use wood when you can get it. 

Use Perishable Foods. — Fruits and vegetables we have in 
abundance. As a nation we eat too little green stuffs. Double their 
use and improve your health. Store potatoes and other roots prop- 
erly and they will keep. Begin now to can or dry all surplus garden 
products. 

Use Local Supplies. — Patronize your local producer. Distance 
means money. Buy perishable food from the neighborhood nearest 
you and thus save. 

GENERAL HINTS 

Buy less, serve smaller portions. 

Preach the " gospel of the clean plate." 

Don't eat a fourth meal. 

Don't limit the plain food of growing children. 

Watch out for the wastes in the community. 

Full garbage pails in America mean empty dinner pails in 
America and Europe. 

The more fortunate of our people will avoid waste and eat no 
more than they need; the high cost of living problem of the less 
fortunate will be solved. 

QUESTIONS 

1. What are the principal methods that one may adopt to reduce the 

cost of the food supply without diminishing the quality? 

2. Are we always justified in asking for the " very best " ? What con- 

stitutes the very best? 

3. Are we ever justified in paying exorbitant prices for certain foods, if 

they cannot be had for less? What would be the remedy in such 
cases ? 

4. Give illustrations of how most people waste money in the selection 

of food. 

5. Name foods from both the animal and vegetable kingdoms, which are 

rich in fats. 

6. Give the chief sources of fat-soluble A. What is its function? 

7. What is the function of the proteins? Give their sources. When may 

they be extravagantly used? 

8. Why is fruit especially needed in the diet? 

9. Name the least expensive fruits and vegetables found on the market 

in the Fall? Spring? Summer? Winter? 

10. What are good substitutes for meat? 

11. What is meant by a "balanced ration"? 

12. What is the function of the carbohydrates? Give their chief sources? 

13. What is the danger from diet largely made up of the seeds of plants? 



FOOD FOR THE FAMILY 209 

PROBLEMS AND DEMONSTRATIONS 

1. Ascertain how much it is costing your family, per person, per month, 

for food, including ice. 

2. Make a budget for one month's food supply for a family of three adults; 

for five; for seven. Divide this budget into three subdivisions, 
embracing separately Groceries and Ice; Meat and Fish; Milk and 
Cream. 

3. Ascertain how much more than is necessary is being spent by your ( 

family for table supplies. 

4. Make a list of the current prices for the following items: Sugar; flour 

per 50 lbs.; potatoes; apples; eggs; butter; canned tomatoes; peas 
and corn. Compare earlier prices. 

5. Compare your family bill for meat with that for groceries. Do you 

think that the amounts are properly proportioned? 

6. Ascertain if possible if anything could be saved through ordering food 

items by parcel post direct from the farm. 

7. If in 1916 the price of bacon was 30 cents a pound and in 1917 40 cents, 

what was the per cent, of increase in the price ? 

8. Calculate the calorie content for menu number III, page 201. How many 

calories would be left for the other two meals eaten on the same 
day? Give total calories you would allow for the other two meals. 

9. Can you give a menu that you have seen served, which had an excess of 

fat? Of carbohydrates? 

REFERENCES 

Condit and Long, How to Cook and Why. Harper Bros. 

Fisher & Fisk, How to Live. Funk & Wagnalls. 

Gephart & Lusk, Analysis and Cost of Keady-to- Serve Food. Ameri- 
can Medical Assn. 

Greer, E., Food: What it is and Does. Ginn & Co. 

Kellogg & Taylor, The Food Problem. The Macmillan Co. 

Kinne & Cooley, Foods and Household Management. The Macmillan Co. 

Lusk, G., Food in War Time. W. B. Saunders. 

Lusk, G., The Elements of the Science of Nutrition. W. B. Saunders. 

Mitchell, The Fireless Cook Book. Doubleday, Page & Co. 

Richards, Ellen H., The Cost of Living. John Wiley & Sons. 

Rose, M. S., Feeding the Family. Thei Macmillan Co. 

Sherman, H. O, Food Products. The Macmillan Co. 

Sherman, H. O, Chemistry of Food and Nutrition. The Macmillan Co. 

Stern & Spitz, Food for the Worker. Whitcomb & Barrows. 

Stiles, P. G., An Adequate Diet. Harvard Univ. Press. 

Taber, C. W., Taber's Dietetic Charts. Chart & Record Co., Chicago. 

Bulletin, Foods and Cooking — Canning and Cold Storage. Supt. of 
Documents, Washington, D. C. 

Bulletin, Food Laws, Chemistry Bulletin No. 69. Supt of Documents, 
Washington, D. C. 

Farmers' Bulletins 808, 817, 824. How to Select Foods I, II, III. U. S. 
Dept. Agriculture. 

Farmers' Bulletin 717, Food for Young Children. U. S. Dept. Agri- 
culture. 

Bulletin, Milk, the Indispensable Food for Children. U. S. Dept. 
Labor, Children's Bureau. 

Bulletins, The Adequacy and Economy of Some City Dietaries; 
Food for the Family; Food Allowances for Healthy Children; 
and Food Charts. N. Y. Assn. for the Improvement of the Condition 
of the Poor, 105 E. 22nd St., 1917. 
14 



CHAPTER XVIII 
FOOD MARKETING 

One pha^e of home study and planning that has been neglected 
by the average housewife, is the preparation that foodstuffs undergo 
for market and the purchase of food materials. Recently the 
Government, as well as many private investigators, has devoted 
considerable study to methods of distribution, especially to the more 
economic organization of wholesale markets in cities, and the possible 
direct connection by parcel post of the producer and the consumer. 
Some agitation pertaining to the delivery of purchases on the part 
of tradesmen is now in evidence, but the fundamental principles 
underlying the production and preparation of our food supply have 
been neglected. 

Production. — The ultimate source of production of practically 
all that we subsist upon is the farmer and stock-grower. Strictly 
speaking, the farmer represents plant production, while the stock- 
grower may more typically represent animal production and animal 
products, such as milk, butter, cheese, etc. 

The dealer, jobber or wholesaler who makes his living through 
the sale of food products becomes more or less a student of agri- 
cultural economics. To be successful he must know the sources of 
supply, such as the great wheat-producing areas of the world and 
the enterprises engaged in the preparation of food products for 
market. He knows just which states we can depend upon for corn 
and other cereals. The truck-gardens and the fruit areas of America 
are to him an open map. The same is true of the animal industry. 

This information, however, is not sufficient. He must be 
familiar with normal and abnormal climatic conditions and with 
the normal and abnormal economic conditions that are liable to 
affect the total production or consumption of food products. Fur- 
ther, he must know the processes involved in their preparation for 
market and in their transportation to the food centres of the coun- 
try. If food products mu^st undergo a process of preparation, he 
knows and can trace the route that they take from the farm or 
ranch to the factory, cannery or stock-yards. All the factors that 
enter into the distribution of the finished product form for him 
an open book. 
210 



FOOD MARKETING 211 

Men engaged in this business study the daily market reports 
in the newspapers, as well as the weather reports, and tihey often 
send out special investigators to ascertain crop conditions. Every 
factor that enters into the question of supply, demand and price is 
studied with the minutest detail. 

While it is not necessary for the housewife to cover all these 
details, such a study should not be entirely neglected in the home. 
The application of this statement will be made in this chapter. 

Preparation of Foodstuffs. — Few articles of food Teach the 
market without undergoing some form of preparation, with the 
exception of fresh fruits and vegetables and perhaps fish and eggs. 

The cereals are first made into flours and meal or subjected 
to other processes. Vegetables, fruits, fish and meat products form 
the ba&is of the canning industry. Sugar is a manufactured food 
product, as are butter and cheese. Eggs are candled, and even 
salt undergoes a preparation for market. All the functions of the 
butcher and packer are represented in our meat supply. Added to 
all these processes are the problems of cold storage. 

Distribution. — The raw product must first be shipped from 
the farm or ranch. Wheat and other cereals go to the miller. 
Cattle go to the butcher, to the packer, and, like other perishable 
products, to the cold storage warehouse. This represents the first 
cost of transportation, for which the farmer and ranchman gener- 
ally pay. The miller and the packer add their profit to the cost of 
preparation. 

Jobbers or wholesalers are the principal customers of the miller, 
the packer and the canner. They send out their salesmen to the large 
and smaller retail dealers, adding to the cost of the finished product 
their cost of doing business, together with their profit. 

The retailer now offers the finished product to the public. His 
cost of doing business, which includes rent, heat and light; taxes 
and insurance; freight, express and drayage; clerk hire; paper, 
string, general supplies and delivery to customers, must, with his 
profit, be added to the price charged him by the jobber. The fixed 
charges of the grocer, or the cost of doing business, cannot be much 
less than 20 per cent. This does not include his profit. Fixed 
charges are included in items listed as cost of doing business. The 
factors, then, that make the ultimate price paid by the consumer 
for foodstuffs include the following: 



212 THE BUSINESS OF THE HOUSEHOLD 

1. Producer: (Farmer and Ranchman, etc.) 

(a) Price paid for the raw product. 

2. Manufacturer : (Miller, Packer, Canner, etc.) 

(b) Transportation from producer, if paid by the manufacturer, 
which is sometimes the case. 

(c) Cost of fabrication or manufacture in preparation of raw ma- 
terial for market. 

(d) Profit of manufacturer. 

3. Jobber and Wholesaler: 

(e) Transportation from the manufacturer to jobber. 

(f) Cost of doing business — selling to retailers. 

(g) Profit. 

4. Retailer: 

(h) Transportation from jobber or wholesaler. 
(i) Cost of doing business of retailer. 
(j) Profit of retailer. 
5.. Ultimate Consumer: 

(k) Sum of all the above charges, which forms the retail price of 
commodities. 

A summary of the above shows that the retail price paid by the 
consumer represents the following charges: 

Four " Cost of Production " charges. Three " Transportation " 
charges. Four " Profits." 

The ultimate consumer usually pays a transportation charge 
in the form of delivery servide from the retailer, which the latter 
charges up under " cost of doing business," so that in reality there 
are four transportation charges to be paid. 

Some of the factors that enter into the cost of doing business 
by the jobber and the retailer should be studied by the consumer. 

Cost of Doing Business: (Jobber and Retailer.) 
This charge includes the following items: 

1. Rent. 

2. Insurance and taxes. 

3. Salaries — Officials and owners. 

4. Transportation, including drayage. 

5. Interest on investment. 

6. Interest on debts and accounts. 

7. Depreciation and loss on stock. 

8. Packing — boxes, barrels, crates, paper and twine. 

9. Cost of collecting. 

10. Cost of deliveries. 

11. General overhead. (Miscellaneous expenses not included above.) 

12. The cost of traveling salesmen and clerks may be added; and the cost 

of maintaining "charge accounts" also, which are a part of the 
cost of distribution. 1 
13 Bad accounts. 

x In this connection, should be studied such plans as "Self-Service," 
"Groceries," "Automats," "Cash and Carry," etc. 



FOOD MARKETING 213 

Of course to all these items of expense must be added the original 
cost of the goods and the jobbers' and retailers' profits. 

Some of the Factors That Affect Prices. — Prices of food- 
stuffs, like the prices of all commodities, tend to change in accord- 
ance with changes in the value of money which is the measurer 
of all values — if money becomes dearer, as in the decades preceding 
1896, prices of all commodities tend to drop; if money becomes 
cheaper, as in the 20 years since 1897, then the prices of all com- 
modities become higher. We are living in a time when the prices 
of all things, including foodstuffs, are increasing. Food prices are, 
in addition, influenced by the many special conditions affecting the 
supply and demand for foodstuffs, such as changes in the methods of 
agriculture ; shifts of population from country to city ; transporta- 
tion changes; marketing facilities, etc., some of which are particu- 
larly interesting as they are subject to possible control by individual 
or state action. Anything which increase the supply of foods, or 
reduces the cost of producing them, will bring down prices; and 
anything that increases the demand for foods, or raises the cost of 
producing them, will make prices higher. The world war has 
brought many special factors into play upon both the supply and 
the demand conditions in food markets. The war has brought 
remarkable attempts to affect food prices by government action 
which is intended to stimulate production and direct consumption. 

Prices : 

Prices of foodstuffs are affected by various factors, a few of which are 
mentioned : 

1. Climatic conditions, increasing or reducing total production. 

2. Agricultural conditions, increasing or reducing total production. This 
includes the ravages of insect pests, plant diseases, shortage of labor for 
farm work, and decreasing acreage. 

3. Economic conditions: 
( a ) Transportation,- 

Inability to secure proper transportation. 
(o) Markets, - 

Poor roads and inaccessibility to markets. 

( c ) Manufacturing - 

Unusual conditions involved in manufacturing, such as shortage 
of labor, wages, and the cost of material necessary to packing 
and canning. 

(d) Foreign Conditions- 

Supply and demand in foreign countries competing with us in 
the same commodity. A failure of the South American wheat 
crop, for instance, would affect prices of wheat and flour in 
this country. 



2U THE BUSINESS OF THE HOUSEHOLD 

(e) War,- 

War, whether in this country or in foreign countries, creates an 
unusual demand upon the foodstuffs of this country. Pro- 
duction in the countries at war is necessarily decreased, while 
great armies must be provisioned. 

(f) Storage - 

The holding of great quantities of supplies in storage indefinitely, 
awaiting increased demands. 

(g) Produce Exchages- 

Exchanges, that endeavor to fix prices the country over, no mat- 
ter how beneficial they may be to producers and jobbers, or 
how legal may be their action, tend to raise prices to con- 
sumers, by the amount of the cost of their services and profits. 
This may perhaps be counterbalanced, in part, by the effect 
they have in stabilizing prices over periods of time; this to 
the man on wages, small salary, or other uniform income, is an 
advantage. 
(h)Food Speculators - 

Aside from those represented by legitimate Produce Exchanges, 
and storage warehouses, the professional speculators, who 
attempt to corner markets, add a very heavy burden to the 
consumer's already heavy toll. 
( i ) Population,- 

Ain increasing population brings more demands, and if the sup- 
ply does not increase equal to these new demands, prices must 
go up. 
(j) Unusual Conditions, - 

There are many unusual and unforeseen conditions that affect 
prices, other than those already mentioned. The sudden in- 
creased demand for a little-used product might be an illus- 
tration. 
(h) Higher Standards of Living — 

Higher standards of living usually result in great wastage. 
Material once thought good enough for any table is now often 
discarded, if not entirely disregarded in marketing. Out of 
season products; higher priced articles than the usual run; 
selected materials; the demand for "package goods" rather 
than the same or better quality in bulk; and other factors 
that enter into the cost of "high living" make it easy for the 
food speculators to flourish and indirectly add to the price of 
other commodities. 
(I) Undeveloped Distribution - 

Lack of some practical method of delivering the raw or manu- 
factured material from the producer or manufacturer to the 
consumer which will eliminate the so-called middleman or 
jobber, and to a certain extent the retailer. 

These are the more important factors that enter into the cost of 
foodstuffs, and knowing them the housewife should study the prob- 
lem in order to see what items of expense she may circumvent. A 
few suggestions will be given as possible means for reducing the cost 
of foods to the consumer. 

The Study of Markets. — Every one should be thoroughly f amil- 



FOOD MARKETING 215 

iar with the world's sources of supply, as a matter of information, 
if nothing else. One cannot shop intelligently, or to the best advan- 
tage, if one does not know the sources of our food supply, as well 
as the conditions liable to affect that supply. Why wheat is mar- 
keted in sacks in the West, and in barrels in the East, may not 
directly help us to purchase to the best advantage, but a general 
knowledge of even such seemingly irrelevant facts will prove factors 
in the final solution of problems of food supply. Before the con- 
sumer can curb the abuses of the producer, the manufacturer, the 
jobber or the retailer, if abuses exist, the consumer must under- 
stand the problems and conditions that confront these distributors. 

Buying Direct. — In any practical method of dealing directly 
with the producer, packer or canner, the public must first find where 
they are located. 

The writer has often witnessed potatoes and fruits selling at 
exorbitant prices in the Chicago retail market, when they were rot- 
ting on the ground in Wisconsin and Michigan. On the other hand, 
butter and cheese sell for as much, if not more, in the towns of 
Wisconsin and Illinois — two of the great dairy areas of the country 
— -than they are selling for in Chicago. The advertisements of 
farmers, offering to send butter, eggs and cheese by parcel post to 
the consumer, generally carry a price that is equal to the highest 
Chicago retail price for the highest grades of produce. Why is this 
so ? These are questions every consumer should try to answer. 

If there is a practical method of buying direct, every housewife, 
or a group of families, should endeavor to locate the nearest vege- 
table and fruit canneries, creameries and cheese factories. A list of 
trustworthy farmers, who may be depended upon, should be secured. 
In this work the Government is glad to help, having issued for 
several cities, a list of farmers prepared to deliver by parcel post. 
A sufficient number of families might organize and cooperate, even 
to the extent of sending a representative to spy out the land and 
locate these producers. A carload of potatoes could be ordered at a 
time, canned goods bought by the case, and butter and eggs in large 
quantities could be purchased and divided among the cooperators. 
Even individual families may do this on a smaller scale. Many can- 
neries will agree to sell one or more cases of canned vegetables and 
fruits to an individual. One reason why such plans have not been 
worked out is because we are too indifferent to the seemingly small 
profits involved. 



216 THE BUSINESS OF THE HOUSEHOLD 

Institutions such as large hospitals, jobbers and many retailers 
have access in advance to information showing market conditions, 
and their buyers are constantly studying the daily market reports. 
When conditions indicate a coming shortage in supply on a rising 
market, they purchase on the most favorable conditions. The 
housewife should do the same thing. 

If a family is able to buy in quantities, this is the first thing 
to do. Study the daily reports in the papers of the prices of food 
products. Take advantage of warnings of coming shortages and also 
of low prices, and lay in a supply of canned and package goods for 
future contingencies. If a direct from the farm " marketing is 
being attempted, a knowledge of wholesale prices will help one to 
purchase to the best advantage. 

Storage Facilities. — Another reason why direct buying in quan- 
tities is not practical for everyone at present, is the fact that the 
(modern apartment is not provided with a cellar suited for the 
storage of perishable articles. Tenants should demand, and the 
law should compel all apartment owners to provide, storage room in 
which an even temperature may be maintained. Some of the newer 
apartments are building these rooms. A brick wall instead of 
a frame partition, and the absence of heating pipes, is all that 
is necessary. 

Parcel Post Marketing. — A detailed study of this problem 
should be made by every housekeeper. The parcel post rate is based 
upon distances, or areas called zones, and upon the weight of the 
package to be mailed. Packages of varying weights may be mailed 
within one zone at a rate fixed by the weight and the area of that 
zone. Maps showing these zones may be obtained from any sta- 
tioner, and full details and amounts of postage may be had from 
the local post-office. There are eight zones fixed by the post-office 
department. Seventy pounds may be sent within the first and sec- 
ond, or two nearest zones, and fifty pounds to the other and more 
distant zones. 

Express Service. — Some express companies have offered special 
services in connection with " direct to the consumer buying." The 
express companies have been compelled to compete with the post- 
office service, and in some ways they are in a position to render an 
assistance not available through the parcel post. Every consumer 
should write to the Government, and also to the various express 
companies (now federated for the period of the war), asking for 
information in regard to these two types of service. 



FOOD MARKETING 217 

Neighborhood Marketing Clubs. — Perhaps one of the best 
ways to make marketing by parcel post practical is through the 
formation of neighborhood marketing clubs. If the family of a 
traveling salesman is represented in the club let him, in his travels 
through small towns, find out the farmers who are willing to con- 
tract for the delivery of several barrels of apples or several bushels 
of potatoes, of eggs and vegetables. Cash payment, freight ship- 
ments, and the division of the expenses among a few families even, 
will do much to lower the cost of living. The Government has issued 
directions about containers and methods of transportation. 

Market Deliveries. — A serious attempt is now being made by 
many retailers to charge for each delivery. Somq impose a charge 
of five cents for each single delivery. The delivery system has been 
abused, but it seems to be a necessary economic factor that should 
not be entirely eliminated. In some places, collective deliveries 
have been instituted, one concern delivering for all merchants. 
In other places, especially in the smaller cities, city markets have 
been instituted. Dayton, Ohio, is a splendid illustration of this 
plan : on market days farmers have their stalls on one of the princi- 
pal streets, with their wagons backed up to the street curb; here 
the individual housewife comes, unabashed, market-basket upon her 
arm, to make her purchases. Undoubtedly such a system contributes 
to lowering costs. 

Public opinion must be aroused over the almost prohibitive 
cost of necessities, and every available source of supply and every 
means of economy in distribution should be canvassed. Organized 
clubs and societies should take the matter in hand in connection with 
their own towns. 

Other Factors Contributing to the High Cost of Living. — 
The delicatessen is a menace to the American home. More money 
is wasted in one day's purchase in a delicatessen, by the regular 
patron of such a place, than can be saved in a week by the frugal 
housewife. The purchase of cooked foods, for the normal household, 
except in emergency, is usually uneconomical. 

Our standards of living must be lowered. We must "eat to 
live " but not " live to eat " ; we must learn to serve the simplest 
meal artistically, not to provide an elaborate feast. We must learn 
to eliminate the foods we do not actually need, and base the amounts 
upon actual body needs and conditions. We must learn to say 
" No " when the grocer says " sixty-cent butter; fifty-cent eggs ; and 



218 THE BUSINESS OF THE HOUSEHOLD 

eighty-cents-a-peck potatoes." We must find substitutes, of equally 
nourishing qualities, for high-priced foods. 

Summary. — Let us sum up some of the factors that might re- 
duce the price of f oodstuff s. 

1. Purchasing direct from the producer. 

2. Purchasing in quantities. 

This presupposes a knowledge of the following: 
(a) Conditions of production. 
(6) The processes of preparation. 

(c) The place of production or preparation. 

(d) Transportation problems. 

(e) Methods of distribution. 

(f) Also No. 3. 

3. Providing for proper storage facilities. 

4. Elimination of deliveries. 

5. City public markets. 

6. Elimination of the delicatessen. 

7. Lower the standard of living to a reasonable basis. 

8. A daily study of market reports or prices. 

Organization. — Every Woman's Club should appoint a commit- 
tee to study these problems, and every public-school class in home 
economics should investigate them, in terms of the local community. 
The retailer should be invited to state his problems and ail attempt 
to cooperate with him should be made, if possible. If not, co- 
operative clubs should be formed. Send to wholesalers for infor- 
mation pertaining to the products of canneries and prices. 

At present it is impossible to point out a solution of the problem 
of the high cost of living, but that does not justify us in refusing to 
study the problem in all of its details. 

During the war the Government will be endeavoring to advance 
these problems toward a solution. The best method of solving 
them is by experimentation, and the best way of bringing about 
such experiments is by the diffusion of knowledge pertaining to 
every phase of the food problem. The U. S. Department of Agri- 
culture and the U. S. Food Administration at Washington, and 
the State Agricultural College are centres of information on these 
subjects for citizens of every section. 

QUESTIONS AND PROBLEMS 

1. Name the source of our raw food supplies. 

2. How many transportation charges may be added to the cost of food 

products from the time they leave the farm until they reach the 
consumer? Name them. 

3. How many profits are added? Name them. 



food marketing 219 

4. If possible, visit the nearest cannery or creamery and write a paper de- 

scribing the processes. 

5. Ascertain the name of one or more grocery jobbers in your town or in 

the nearest large city. 

6. Name some of the items that make up the cost of doing business for the 

jobber and the retailer. What are the functions of each? 

7. What is meant by the term "middleman"? What is a Produce Ex- 

change ? 

8. Suggest as many ways as possible for reducing the cost of table supplies. 

9. Secure a clipping from the nearest daily paper showing the market re- 

ports of foodstuffs ; write out the abbreviations and terms used in this 
report, with which you are not familiar, and learn their meanings. 

10. Ascertain the retail price of canned beans, tomatoes, peas, three fruits, 

laundry soap, kerosene and paper towels; ascertain how these are 
sold in quantity, and how much you would have to pay for such a 
quantity from a wholesaler or jobber. 

11. Secure from an Express Company any information, or printed matter it 

will give you regarding its service for purching direct from 
farmers. Write to the Government for similar information. 

12. Name articles of food served on your own table which could be dis- 

pensed with without loss to the body or which could be bought at a 
saving. 

13. Ask your local tradesmen if they would be willing to give a discount for 

purchases carried home by the customer; a discount for cash. 

14. What prevents the Parcels Post System from being a greater success 

in reducing the cost of food? 

REFERENCES 

Donham, S. A., Marketing and Housework Manual. Little, Brown & Co. 

Emerson, P. H., Co-operation. The Macmillan Co 

Richards, E. H., The Cost of Food. John Wiley & Sons. 

Richardson, A. S., Adventures in Thrift. Bobbs, Merrill Co. 

Shaw, A. W., Some Problems in Market Distribution. Harvard Univ. 
Press. 

Sherman, H. C, Food Products. The Macmillan Co. 

Sullivan, J. W., Markets for the People. The Macmillan Co. 

Vulte and Vanderbelt, Food Industries. Chemical Pub. Co. 

Farmers' Bulletin 703, Suggestions for Parcel Post Marketing. U. S. 
Dept. of Agriculture, Washington. D. C. 

Farmers' Bulletin 594, Shipping Eggs by Parcel Post. U. S. Dept. of 
Agriculture, Washington, D. C. 

Farmers' Bulletin 178, Co-operative Organization Business Methods. 
U. S. Dept. of Agriculture, Washington. D. C. 

Farmers' Bulletin 69, Food Laws. U. S. Dept. of Agriculture, Washing- 
ton, D. C. 



CHAPTEE XIX 
WEIGHTS AND MEASURES 

The Federal Government has a department of weights and 
measures, known as the U. S. Bureau of Standards, at Washington, 
D. C. Here are kept the standard yard, bushel, pound, etc., and 
with these all weights and measures may be compared for correction. 
Standard and official time is determined by master clocks which 
in turn are corrected by astronomical observations, and with the aid 
of electricity, clocks in various cities may be kept in unison, or 
rather synchronized according to differences in longitude. 

At the capital in many, if not in all states, is a similar depart- 
ment in which are kept standard and official weights and measures 
based upon those in the Bureau of Standards at Washington. Each 
state legally determines for itself what shall constitute a given 
measure or weight and the .standards of the Federal government 
are taken as a basis. 

Each state also specifies how many pounds of certain articles 
shall be considered a bushel, and fixes regulations governing the 
selling of articles by weight or by measure. The municipal gov- 
ernment of the larger cities in turn has a similar bureau in charge 
of an official sometimes called the city sealer, because he is given 
power to inspect weights and measures, to attach his seal to weights 
and measures, and to confiscate them if they are found faulty. The 
city council of cities also usually establishes rules for the selling 
of products by weight and measure, but all such measures are subject 
to the law of the state in case of conflict. 

Complaints as to Weights and Measures. — Customers' com- 
plaints as to false weights and measures should be made to the 
local municipal or county official in charge of weights and measures. 
Consumers will find it desirable to have scales and measures at 
home to check purchases. These can if desired be sealed by the 
public official. 

Statutory Weights of the Bushel. — For reference purposes, the 
statutory weights of the bushel in the various states are appended 
as an illustration of the foregoing paragraph (table on pp. 224-225) . 

It will be noticed that the articles listed consist principally 
220 



WEIGHTS AND MEASURES 221 

of the cereals, fruits and vegetables. Other articles are listed 
for a single state, that of Illinois, in the following tabulation : 

STANDARD WEIGHTS PER BUSHEL AND QUART IN ILLINOIS 

Bushel, Quart, 

Lbs. Lbs. Ozs. 

Alfalfa Seed 60 1 14 

Apples, green 50 1 9 

Apples, dried 24 12 

Barley ■ 48 1 8 

Beans, green or string 24 12 

Beans, wax 24 12 

Beans, white 60 1 14 

Beans, castor 46 1 7 

Beets 60 1 14 

Blue grass seed 14 7 

Bran 20 10 

Buckwheat 52 1 10 

Carrots 50 1 9 

Charcoal . . . . 20 10 

Clover seed 60 1 14 

Coal 80 2 8 

Coke 40 1 4 

Corn seed, broom 48 1 8 

Corn meal, unbolted 48 1 8 

Corn, in the ear 70 2 3 

Corn, Kaffir 56 1 12 

Corn, shelled 56 1 12 

Cotton seed 32 1 

Cranberries 33 1 % 

Cucumbers 48 1 8 

Flax seed 56 1 12 

Gooseberries 40 1 4 

Hair, plastering, unwashed 8 

Hair, plastering, washed 4 

Hemp seed 44 1 6 

Hickory nuts 50 1 9 

Hungarian grass seed 50 1 9 

Indian corn or maize 56 1 12 

Lime 80 2 8 

Malt 38 1 3 

Millet .50 1 9 

Millet, Japanese barnyard 35 1 1% 

Oats 32 1 

Onions 57 1 12% 

Onion sets, top 30 15 

Onion sets, bottom 32 1 

Orchard grass seed 14 7 

Osage orange seed 33 1 y 2 

Parsnips '. 50 1 9 

Peaches 48 1 8 

Peaches, dried , , . . , , . . , , , . • , , ,.,,,, , 33 1 % 



222 



THE BUSINESS OF THE HOUSEHOLD 



Bushel, 
Lbs. 

Peanuts, green 22 

Peanuts, roasted 20 

Pears 58 

Peas, dried 60 

Peas, green in pod 32 

Popcorn, in the ear 70 

Popcorn, shelled 56 

Potatoes, Irish 60 

Potatoes, sweet 50 

Quinces 48 

Rape seed 50 

Red top seed 14 

Rough rice 45 - 

Rutabagas 50 

Rye meal 50 

Rye 56 

Salt, coarse 55 

Salt, fine 50 

Shorts ■.. 20 

Sorghum seed 50 

Spelt 40 

Spinach 12 

Sweet clover seed, unhulled 33 

Timothy seed 45 

Tomatoes 56 

Turnips 55 

Walnuts 50 

Wheat 60 



Wheat Flour, per barrel 

Wheat Flour, per half barrel 

Wheat Flour, per quarter-barrel sack. 
Wheat Flour, per eighth-barrel sack. 

Cornmeal, per bushel sack 

Cornmeal, per half -bush el sack 

Cornmeal, per quarter-bushel sack. . . 



Quart, 
Lbs. Ozs. 
11 
10 
13 
14 

3 

12 
14 

9 

8 
9 

7 

9 

9 

12 

iiy 2 

9 

10 
9 
4 
6 

y 2 
6y 2 

12 

11% 

9 
14 

Lbs. 

196 

98 

49 

24% 
48 
24 
12 



The important articles in this list may be compared with the 
standard weights in the state in which the student lives; informa- 
tion on state laws regarding weights can be secured from the State 
Secretary at the State Capitol. 

As it would be impractical to give the law of each state or 
large city governing the sale of commodities, a few principal feat- 
ures pertaining to important commodities is given from the Chicago 
ordinances governing the Department of Weights and Measures. 
The student and housewife should become familiar with the law 
of the state or the ordinances of the city in which he or she lives, 
in so far as they affect the commodities which she handles. 



WEIGHTS AND MEASURES 223 

Bread. — Bread must be made in clean and sanitary places, sub- 
ject to inspection of the city officials, and it must not contain any 
deleterious substances. 

A pound loaf, avoirdupois, is the standard, and loaves must weigh 
one pound, one-half, three-quarters, double, triple, quadruple, quin- 
tuple or sextuple loaves, and in no other way. 

Every loaf shall have affixed to it a label, 1 in. sq. or 1 in. in 
diameter, which shall bear in black ink letters or figures upon white 
paper, the weight of the loaf and the business name and address of 
the maker, baker or manufacturer. 

Everyone offering bread for sale must keep on hand suitable 
scales and weights in a conspicuous place, and shall weigh the bread 
in the presence of the purchaser if requested to do so by the latter. 

There has been much discussion regarding the wisdom of 
fixing a legal price for standard sizes or weights of bread, but the 
principal argument against this policy is the fact that the market 
prices of raw materials as well as for labor fluctuate, and a legally 
fixed price may mean a great loss to the baker. 

Fuel. — The driver or delivery man must be supplied with a 
ticket, bearing the name of the seller of the fuel to be delivered, 
which ticket shall also show the net weight of the fuel, and the name 
and address of the purchaser to whom the ticket must be delivered, 
at the time of the delivery of the fuel. Fuel must be sold by 
avoirdupois weight unless otherwise provided for by contract ; this, 
however, does not include firewood. 

If the purchaser demands that the weight specified on the ticket 
be verified, the seller or his agent must reweigh the same upon a 
scale designated by the city inspector of weights and measures, or 
upon a scale agreed upon by purchaser and seller. 

Firewood shall measure 128 cubic feet to the cord, and the driver 
shall deliver to the purchaser a ticket showing the quantity of fuel 
delivered. 

Milk and Cream. — The cover or cap of every bottle or glass 
milk or cream container should bear in indelible letters the name 
of the individual or concern bottling such milk or cream, and the 
bottle containing the same must not have blown into it the name 
of anyone other than the name appearing on the cover or cap as 
the bottlers of the same ; glass containers must also be indelibly and 
permanently marked with their exact capacity. 

Ice. — Unless specifically agreed upon between seller and buyer, 



224 



THE BUSINESS OF THE HOUSEHOLD 



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226 THE BUSINESS OF THE HOUSEHOLD 

all ice must be sold by avoirdupois weight, and it must be weighed 
at the time of delivery by the deliveryman, who shall be provided 
with a steelyard balance for the purpose which has been adjusted 
and sealed by the inspector of weights and measures. 

Meats. — All meats, excepting shanks, offal, heads and plucks, 
poultry and wild game, shall be sold by weight, and shall be weighed 
on a scale by weights or a beam, properly sealed. 

Scales. — No scale shall be kept or used for weighing any sub- 
stance or thing for the public, for fee or reward, unless said scale 
has been inspected by the proper officials and unless the weigher 
has otherwise complied with the ordinances and has been duly 
authorized to do so. 

Pedlers and hawkers must have their scales annually inspected, 
adjusted and sealed by the city weigher. 

Heaped Measure. — All corn in the ear, potatoes, coal, large 
fruits, coarse vegetables and all bulky articles sold or offered for 
sale by dry measure, shall be sold by heaped measure, and all com- 
modities sold by heaped measure shall be duly heaped in isaid meas- 
ure in the form of a cone, the top of the outside measure by which 
the same shall be measured to be the limit of the base of such cone, 
and such cone to be as high as the nature of the article to be 
measured will admit the cone to be heaped. 

Avoirdupois Net Weight or Numerical Count. — All vege- 
tables, fruits and vegetable products, meats and non-liquid animal 
products, butter, cheese and dairy products, except fresh berries 
and small fruits, shall be sold by avoirdupois net weight, or numeri- 
cal count unless otherwise agreed upon in writing. Seeds, grain, 
flour, meal and other cereals or cereal products, and also vegetable 
roots which by common custom are sold by the bunch are not in- 
cluded in this ordinance. 

Repacking. — Fresh or green fruit, or vegetables if emptied from 
and repacked in barrels, boxes, baskets or other receptacles, must 
show upon the receptacle in a conspicuous place the words "Re- 
packed by," followed by the name of the one repacking such 
articles. 

Fresh Berries and Small Fruits. — In the absence of a special 
agreement, such fruits must be sold by avoirdupois weight if in 
bulk, or by numerical count, or in uniform size baskets, boxes or 
other receptacles, containing one quart or one pint standard dry 
measure, or multiples thereof, and in no other way, and said recep- 
tacles must be uniformly filled. 



WEIGHTS AND MEASURES 227 

Measures and weights of all kinds are subject to the inspection 
of the official sealer, and penalties are attached to the infraction 
of any and all of the ordinances pertaining to weights and measures. 

For reference purposes specifications of the various measures 
is here given : 

Linear Measures. — Measures of length may be graduated in 
yards, meters, feet or inches with customary subdivisions, provided 
that nothing in this section shall prevent the subdivision of the 
Gunter's chain into links. 

Main divisions shall be plainly designated, and the length of 
their graduations shall be longer than that of the intermediate 
subdivisions. Intermediate subdivisions shall be varied in length 
that they may be conveniently read. 

Lines marking subdivisions shall not be greater in width than 
one-quarter of the smallest subdivision, and in no case wider than 
.03 inch. 

All graduations must be spaced uniformly and be perpendicular 
to the edge of measure. 

Measures of length may be made of any material whose form 
or dimensions remain reasonably permanent under normal con- 
ditions; for example, steel, brass, hard wood, etc. Provided, how- 
ever, that tapes for commercial purposes may be made of wire- 
woven cloth. 

The ends of wooden measures shall be protected by metal firmly 
attached to the measures. 

Length measures shall be smooth and straight. 

Counter tacks may be used when diameter of head does not 
exceed one-eighth inch. 

Tapes which have errors exceeding these following should not be 
sealed : Length 100 feet, allowable error 1 / 4 inch, under a tension of 
10 lbs.; length 50 feet, allowable error 3 / 32 inch, with tension 10 
lbs. ; length, 25 feet, allowable error */ 4 inch with tension 10 lbs. ; 
length 6 or 3 feet, allowable error 1 / 32 inch with tension of 5 lbs. 

On all measures of length except tapes the following tolerances 
shall be allowed : 6 feet, tolerance 3 / 16 inch ; 3 feet, 3 / 32 inch ; 1 foot, 
1 / 32 inch ; 6 inches or less, 1 / 64 inch. 

Liquid Capacity Measures. — Liquid measures must be made 
strong enough to withstand ordinary usage without becoming easily 
damaged, and should be made of enamel ware, metal, glass or com- 
position. Liquid measures must be such that the capacity is deter- 



228 THE BUSINESS OF THE HOUSEHOLD 

mined by a definite edge at the tap of the measure, and graduating 
rings, except those placed to strengthen the measure, will not be 
allowed. In a liquid measure having a tap, this tap must com- 
pletely empty the measure without tilting, and when pouring lip 
is provided the measure must hold its full capacity without the 
contents running into the lip. 

The following errors are allowable: 10 gal., tolerance 5 fl. oz. 
or 9 cu. in. ; 5 gal., 3 fl. oz. or 5.4 cu. in. ; 1 gal., 4 fl. drams, or .9 cu. 
in. ; 1 quart, 2 fl. drams, or .45 cu. in. ; 1 pint, 1.5 fl. drams, or .34 cu. 
in. ; 1 gill, 1.0 fl. drams, or .22 cu. in. 

Tables of Weights and Measures. — For reference purposes 
the various tables of weights and measures, together with the 
Metric System, is here appended : 

United States Linear Measure 

12 inches (in.) = 1 foot (ft.). 

3 ft. = 1 yard (yd.) = 36 inches. 
5% yards == 1 rod (rd.) = 16% feet. 

320 rods = 1 mile (mi.) = 1760 yards = 5280 feet. 

Square Measure 

144 square inches (sq. in.) .== 1 square foot (sq. ft.). 
9 sq. ft. == 1 square yard ( sq. yd. ) . 

30% sq. yd. = 1 square rod (sq. rd.). 
160 sq. rd. == 1 acre (a.). 
640 acres = 1 square mile (sq. mi.). 

36 sq. mi. = 1 township (twp.) 

Cubio Measure 

1728 cubic inches (cu. in.) =: 1 cubic foot (cu. ft.). 
27 cu. ft = 1 cubic yard (cu. yd.). 
128 cu. ft. = 1 cord/ 

1 gal. contains 231 cu. in. 

1 bu. contains 2150.42 cu. in. 

United States Liquid Measure 

4 gills (gi.) = 1 pint (pt.). 

2 pt. = 1 quart (qt.) =8 gills. 

4 qt. = 1 gallon (gal.) = 8 pints = 32 gills. 
31% gals. = 1 barrel (bbl.). == 126 quarts. 
2 bbl. == 1 hogshead (hhd.) = 63 gallons = 252 qts. 

Apothecaries 9 Fluid Measure 

60 minims (m.) = 1 fluid dram (fl. dr.). 

8 fl. dr. = 1 fluid ounce (fl. oz.) = 480 minims. 
16 fl. oz. = 1 pint (o.) = 128 fl. dr. == 7680 m. 

8 0. = 1 gallon (cong.) = 128 fl. oz. = 1024 fl. dr. 



WEIGHTS AND MEASURES 229 

United States Dry Measure 

2 pints (pt.) =1 quart (qt.). 

8 qt. = 1 peck (pk.) = 16 pints. 

4 pk. = 1 bushel (bu.) = 32 quarts = 64 pints. 

Avoirdupois Weight 
27 11/32 grains (gr.) = 1 dram (dr.). 
16 dr. = 1 ounce (oz). = 437% grains. 
16 oz. = 1 pound (lb.) = 156 drams = 7000 grains. 
100 lbs. = 1 hundredweight (cwt.) = 1600 ounces. 
20 cwt. = 1 short ton (t.) = 2000 pounds. 
2240 lbs. = 1 long ton. 

Troy Weight 
24 grains (gr.) = 1 pennyweight (dwt.). 
20 dwt. = 1 ounce (oz.) = 480 grains. 
12 oz. = 1 pound (lb.) = 240 dwt. = 5760 gr. 

Apothecaries' Weight 
20 grains (gr.) = 1 scruple (3). 

3 3—1 dram ( 3 ) = 60 gr. 

8 3=1 ounce (3) = 24 3 = 480 gr. 
12 5= 1 pound (lb.) = 96 3 = 288 9 = 5760 gr. 

Number of cubic inches in United States Standard Capacity measures: 
Liquid Measure Equivalents 
1 Gallon contains 321 cu. in. 
1 quart contains 57.75 cu. in. 
1 pint contains 28.875 cu. in. 
1 gill contains 7.218 cu. in. 
1 fluid oz. contains 1.804 cu. in. 
1 dram contains .225 cu. in. 

Dry Measure Equivalents 
1 bushel contains 2150.42 cu. in. 
1 peck contains 537.60 cu. in. 
1 quart contains 67.20 cu. in. 

1 pint contains 33.60 cu. in. 

Counting Measure 
12 things = 1 dozen (doz.). 
12 dozen = 1 gross (gr.). 
12 gross = 1 great gross. 
20 things = 1 score. 

Stationers' Table 
24 sheets = 1 quire, 
20 quires = 1 ream. 

2 reams = 480 sheets = 1 bundle. 

5 bundles = 1 bale. 

Size of Books 

Pages Leaves Sheets 

Folio 4 2 

Quarto (4to) 8 4 

Octavo (8vo) 16 8 

Duodecimo ( 12mo ) 24 12 

Octodecimo ( 18mo) 36 18 



230 THE BUSINESS OF THE HOUSEHOLD 

THE METRIC SYSTEM 

The metric system is based on a unit of length, the meter which 
equals 39.37 inches. A cubic box one-tenth of a meter on the side 
has the unit of capacity, a liter, which equals 1.056 liquid quarts; and 
the water contained in a liter, weighs one kilogram, which equals 
2.205 pounds. The unit of weight, the gram, in the metric system 
is the weight of water contained in a cubical box one-hundredth 
of a meter on a side. (Note : These values are not precisely correct, 
but hold for all but the most refined measurements.) 

The entire system is then built up by multiplying or dividing 
the unit by ten, one hundred, one thousand, using always the same 
prefix to indicate what the unit is multiplied or divided by, thus : 

milli means 1/1000 or divided by 1000 
centi means 1/100 or divided by 100 
deci means 1/10 or divided by 10 
deka means 10 or multiplied by 10 
hecto means 100 or multiplied by 100 
kilo means 1000 or multiplied by 1000 
The tables then become: 

Length 

10 milli-meters = 1 centi-meter. 
10 centi-meters = 1 deci-meter. 
10 deci-meter s = 1 meter. 
10 meters — 1 deka-meter. 
10 deka-meters = 1 hectometer. 
10 hecto-meters = 1 kilo-meter. 

Weight 

10 milli-grams = 1 centi-gram. 
10 centi-grams = 1 deci -gram. 
10 decigrams = 1 gram. 
10 grams — 1 dekagram. 
10 dekagrams = 1 hectogram. 
10 hecto-grams = 1 kilo-gram. 

Capacity 

10 milli-liters = 1 centi-liter. 

10 centiliters = 1 deci-liter. 

10 deci-liters = 1 liter (1 cubic deci-meter). 

10 liters = 1 deka-liter. 

10 deka-liters = 1 hecto-liter. 

10 hectoliters = 1 kilo-liter. 

In the metric system there is but one standard of weight, one standard of 
measure for liquids and dry commodities alike, and but one standard of 
length. 



WEIGHTS AND MEASURES 231 

A Few Useful Equivalents Approximate 

Equivalents 

1 centi-meter = .394 inch. 4/10 

1 inch = 2.54 centi-meters. 2y 2 

1 yard = .914 meter. 9/10 

1 meter = 39.37 inches. 39y 3 

= 1.09 yards. 1 1/10 

1 kilo-meter = .621 mile. % 

1 mile = 1.61 kilo-meters. 1 6/10 

1 dry quart = 1.164 liquid quarts (U.S.). 1 1/6 

= 67.2 cubic inches. 

1 liquid quart = .859 dry quart (U. b.). 6/7 

= 57.75 cubic inches. 

1 liter == 1.056 liquid quarts (U.S.). 1 1/20 

= .908 dry quart (U. S.). 9/10 

1 cubic inch = 4.43 ft. dr. 4% 

1 cubic meter— 1.308 cubic yards. ly 3 

1 cubic yard = 21.696 bushels (U. S.). 21% 

1 fluid dram = .226 cu. in. 14 

1 hecto-liter = 26.42 gallons (U. S.). 26% 

= .765 cubic meter. % 

= 2.84 bushels (U. S.). 2 6/7 
1 corcl (firewood) = 4 x 4 x 8 ft = 128 cu. ft. 
1 barrel refined oil = 42 gallons. 
1 heaped bushel = 1% struck bushel or ordinary 

bushel. 
1 firkin butter = 56 pounds. 
1 gallon of water weighs 8.323 pounds. 
1 cubic foot of water = 7% gal. 

1 gram = 15.43 grains. 15% 

1 mili-gram — .0154 grains. 1/65 

1 grain == 64.8 milli-grams. 65 

1 ounce (Av.) = 28.35 grains. 28% 

1 kilo-gram = 2.205 pounds (Av.). 2 1/5 

1 pound (Av.) = .454 kilo-gram. 9/20 

1 ton = 907.185 kilo-grams. 900 

1 metric ton = 2204.62 pounds (Av.). 2200 
1 long ton = 2240 pounds. 
1 carat = 3.171 grains (varies considerably). 

TO FIND CAPACITIES 

Diameter of a Circle. — To find the diameter of a circle from 
the circumference, divide the circumference by 3.1416; to find 
the circumference, multiply the diameter by 3.1416. 

Capacity of a Rectangular Box or Bin. — Multiply the length 
by the breadth by the depth or height. The three dimensions must 
be in the same units. For example: A bin is 6 ft. wide, 5 ft. 6 in. 
deep and 8 ft. 3 in. long. Its capacity is 6 X 5% X 8% = 272% 
cubic feet. 

Capacity of a Cylindrical Measure or Box, or Bin. — Multiply 
the diameter by the diameter, by 3.1416, by the height, and divide 



232 THE BUSINESS OF THE HOUSEHOLD 

by 4. For example: If a cylindrical measure is 13 inches in diame- 
ter and 6 inches in depth, its capacity is (13 X 13 X 3.1416 X 6) 
~- 4 = 796.39 cubic inches. 

Find the approximate capacity of a barrel of dimensions differ- 
ent from those given in the statutes by measuring the average diame- 
ter and depth. Example: A barrel is 25 inches high between the 
heads inside. The inside diameter of the top and bottom is 18 
inches and the inside diameter at the centre is 20 inches. Find 
the capacity. The average diameter of the ends and of the centre, 
or (18" plus 20") -f- 2 = 19 inches. Then proceed as in the case of 
a cylinder (19 X 19 X 3.1416 X -25)~ 4 = 7088.2 cubic inches. 

Capacity of a Berry Box. — The approximate capacity of a 
berry box which has sloping sides can be found by adding the 
area of the top and the area of the bottom and dividing by 2 to 
get their average, and then multiplying this by the depth. 

Example. — A berry box is 5.1 X 5.1 inches on top; 4.37 X 4.37 
inches at the bottom, and 2.93 in depth, the content is [(4.37 X 
4.37) "plus (5.1 X 5.1)] X 2.93 -=- 2 = 66.1 cubic inches. 

To find the capacity of a berry box more exactly, find the 
area of the top and the area of the bottom, and the perpendicular 
depth. Then multiply one-third of the height by the sum of the 
top area, plus the bottom area plus the square root of the product 
of the two areas. 

Example. — A berry box is 5.1 inches on the side at the top and 
4.37 inches on the side at the bottom. The depth is 2.93 inches, 
then (7,'X 2.93) [(4.37 X 4.37) plus (5.1 X 5.1)] plus\T [(4.37 
X 4.37) X (5.1 X 5.1)]= 65.8 cubic inches. 

QUESTIONS 

1. Explain the purpose of the Bureau of Standards of the Federal Govern- 

ment at Washington? 

2. What is the standard weight in your state of a bushel of potatoes? 

3. Of a bushel of sweet potatoes? Of a bushel of onions? Of a bushel of 

apples? Of a bushel of turnips? 

4. What is the weight of a barrel of flour? 

5. What are the weights of the different sizes of sacked flour? 

6. What is meant by "heaped measure"? 

7. What is meant by the "City Weigher"? 

8. What is linear measure? 

9. Give the table of United States Dry Measure. 

10. Give the table of United States Liquid Measure. 

11. How many ounces in an avoirdupois pound? 

12. How many pounds in 1 cwt.? How many pounds in a short ton? 

In a long ton? 

13. Give the counting measure. 



WEIGHTS AND MEASURES 233 

PROBLEMS AND DEMONSTRATIONS 

1. If you have a City Weigher in your community, what is his name and 

where is his office? 

2. Does your city prescribe legal weights and measures? If not, does 

your state do so? 

3. Secure from your city or state authorities any printed matter issued 

covering the law regulating weights and measures. 

4. What are the legal requirements for the sale of bread in your city or 

state. 

5. If a bread label is required, secure one, and explain any printed matter 

thereon. 

6. Examine a bottle of milk or cream or its cap and explain any reading 

matter printed on the cap, or blown into the bottle. 
7 How is ice sold in your community? 

8. Does the law of your community or state require certain articles to be 

sold by heaped measure, and if so, name them ? 

9. Does it require any articles to be sold by numerical count, and if so, 

name them? 

10. Is there any law in your community regarding "repacking," and if so, 

explain it? 

11. If a bin is 8 ft. wide, 6 ft. 6 inches deep, and 8 ft. long, what is its 

cubic capacity? 

REFERENCES 

Bureau of Standards, Circular No. 55, Measurements for the House- 
hold (1915). Supt. of Documents, Washington, D. C. 

Bulletin No. 394, A Survey of Typical Co-operative Stores in the U. S. 
Dept. of Agriculture, Washington, D. C 

Kennedy, The Bigness of Little Things. Money Weight Scale Co. 

Net Weight Law (62nd Congress, Public Act 419). Supt. of Documents, 
Washington, D. C. 



CHAPTEE XX 

CLOTHING 

No person likes to be conspicuous either by overdressing or by 
underdressing, but a style suited to the individual in form and 
color; to the occasion and place in material, make and trimming; 
used and cared for with preservation in mind — such a style of 
dress does not call for the large output of money which fashion, 
show and neglect entail. 

The effort to standardize dress in groups as for school, for col- 
lege, for houseworkers and for the business woman is an attempt 
in the direction of appropriate dressing and economy, which more 
nearly approaches the standard dress for men. Where no one of 
your associates spends more than you for dress, there is stimulus 
and inspiration — a real chance for adaptation, ingenuity and skill 
from which good dressing results. If through standardization 
comes lessened expense there will be for all a larger per cent, of the 
income available for education, culture, travel, benevolence and other 
avenues of a higher life. 

Clothing Expenditures. — Next to rent and food, clothing is per- 
haps the most important item in the family budget. The only way 
in which a family can determine what should be spent for clothing 
is to keep an accurate record of the family needs during an entire 
year. The total expense for the year will be a fair index upon 
which to base the monthly budget for the next year, providing due 
consideration has been given to the amount and character and 
age of clothing on hand at the beginning of the year. A good way 
to begin a study of clothing-cost is to make an inventory of the 
wardrobe on hand, placing the lists in a blank book and assigning 
several blank pages to each person's record. Add to the list of the 
articles of clothing on hand facts as to date of purchase, cost and 
present value. A survey of this list enables one to make plans for 
additions, renewals, and then with records of purchases as made 
during the year makes possible intelligent budget planning regard- 
ing the wardrobe for the year ahead. 

In studying economies in clothing, there are several factors to 
be taken into consideration, as intimated in a previous chapter. 
234 



CLOTHING 235 

One's social status of course means much when considering this sub- 
ject. The laboring man whose work is out-of-doors, or in a factory 
or shop, does not need as expensive clothes as the man who must 
make a fair appearance in an office or elsewhere. Again, the day- 
laborer's family does not have the social opportunities or obligations 
that demand a more or less elaborate wardrobe. We are not, how- 
ever, so much concerned with these varying conditions, as we are 
with the question of decreasing costs, whether for the laboring man's 
family or for the professional man's family. There are, however, 
two or three conditions that do enter into a discussion of this subject : 

City Conditions vs. Rural. — Those living in or near large 
cities have certain advantages regarding the purchase of clothing 
not enjoyed by those living in smaller towns and rural communities. 
The large city stores frequently offer children's and women's gar- 
ments at prices so low that one can hardly afford to make such 
garments at home. Fifteen years ago little boys' trousers, for 
instance, used to sell in such stores at twenty-five cents, which 
could probably not be obtained to-day for fifty to seventy-five cents. 
It might not pay the mother to make a suit for her boy from some 
adult's garment when clothing can be purchased for children at 
the low prices offered in such stores. In the small towns and rural 
communities, however, these opportunities are not usually avail- 
able, although the clothing stocks carried in such communities are 
increasing in variety and the mail-order houses are doing much 
to meet the clothing problem of many farm homes. If the store- 
keeper could be assured of sales, he will often put in such stock. 
Even to-day in many cases the mother in smaller towns may well 
afford to make much of the children's clothing from material taken 
from the adults' cast-off garments. The problems of saving in the 
purchase or making of new clothing and in "making over " are of 
interest to everyone. 

Knowing How to Sew. — There are nearly as many High 
Schools that teach sewing as there are High Schools that teach cook- 
ing. In 1914 more Elementary Schools were teaching sewing than 
were teaching cooking; and of High Schools, 232 reported sewing 
to 257 cooking. About 2500 High Schools out of a total of some 
6000 were teaching household arts. 

A census of the girl students in one town showed that over 90 
per cent, of the families represented had sewing machines. Most 
women know something of making and of repairing clothing, but 



236 THE BUSINESS OF THE HOUSEHOLD 

how many of them can really cut out a pattern, fit and make a dress? 
If a goodly proportion are unable to do this, then we have found 
the key to one of the doors through which flows a great wastage in 
the average American home. If the mother cannot sew, and by 
sewing is meant an ability to make an ordinary dress, then by all 
means the mother should see to it that her daughter is taught 
this most practical and necessary art. 

Dressmakers command all the way from a dollar and a half to 
three dollars per day, and many of them more than that. The 
dressmakers bill in the home of many a family living upon a small 
income is a considerable item. There are many families of average 
means in which all the clothing of the mother and daughters as well 
as of the father and sons has been bought ready to wear. Some of 
this expense should and could be saved by the average family if some 
one or more of its members knew how to sew. A mother should feel 
that she has neglected her duty, if she brings up a daughter without 
teaching her this accomplishment. 

Millinery. — Most girls may be taught how to sew, but few are 
able to become good milliners. This is a creative art that takes 
more or less talent and native ability. This fact, however, should 
not deter a mother from encouraging a daughter to learn how 
to trim her own hats. Millinery is always expensive in proportion 
to the other parts of a woman's wardrobe, and if one member of the 
family possesses the ability, and is taught the elementary principles 
of millinery, a great saving in the family budget may be made. 

Children's Clothing. — If there is a member of the family that 
can sew, something may often be saved by making garments for little 
children, boys included, but one should first be satisfied that they 
cannot be purchased ready-made as cheaply as they can be made at 
home. Making at home may often provide a better material, and 
a simpler style. As suggested above, mothers may sometimes find 
it possible to make over adults' clothing for children. 

Women's Clothing. — In this connection there are two things 
to be considered : first, fashion, and second, economy. If one over- 
emphasizes fashion, economy tends to be disregarded. If one might 
disregard fashion, it would pay in the long run to purchase, as our 
grandmothers did, the most durable material. A good suit, for 
instance, could easily be made to wear for two or more seasons, 
and then the material would prove serviceable when sponged and 
ripped for making into some garment for one of the children. 



CLOTHING 237 

To-day, however, fashions change every year and sometimes oftener. 
This year's suit, if made in the extreme of fashion, may appear 
ridiculous next year. For that reason, some women do not plan 
that a suit will last a second season; thus the changing fashions 
have added for many a very considerable sum to the cost of high 
living. Were it not for this " being in f ashion," the woman who 
purchases a twenty-five dollar suit, might better pay fifty dollars 
for one that would last three seasons. This is the solution : to buy 
the better material in a moderate style which with slight alterations 
will look well and wear two or more years. 

False Standards of Dress. — Those women who choose clothes 
for display only, who simply do as others do, who are bound by 
the shackles of fashion, are doing nothing to reduce the high cost 
of clothing in the clothing budget. Compare the attire of the better- 
class working-girl to-day with her sister of the last generation. What 
is the difference? Tailor-made suits; fashionable hats; silk waists; 
silk stockings and perhaps silk underwear and high shoes at six 
to ten dollars' a pair; these are the differences — costly and less 
durable materials. It is the same problem that confronts us in 
studying the family budget for food. Many of us demand the 
attractive, the most expensive and the rare foods, and similarly we 
are demanding a standard of dress befitting the daughters of the 
wealthy. 

The principal method of reducing dress expenditures must be 
found in a return to saner standards. Fashion must be brought 
into proper bounds. Women must be taught to dress as an artist 
learns how to frame a picture. The artist's concern is not with 
the frame but with the picture. He desires to bring out certain 
high lights; to emphasize the keynote of the picture and to har- 
monize its color-tone, and this he does in the selection of his frame. 
Just so, the woman should learn the art of dressing, which is a 
matter of individual taste, not blind following of changing fashions. 
Instead of making of herself one of a million automatons, all 
dressing alike in the latest fashion, she should learn to select the 
clothes and colors that will accentuate her individuality and har- 
monize with her character and duties. When she is willing to do 
this, she will be able to reduce the clothing expense, since the items 
of her wardrobe will remain serviceable for a longer time. 

Men's Clothing. — Men are not so much the slaves of fashion 
as are women, although the professional tailors are trying to enmesh 



238 THE BUSINESS OF THE HOUSEHOLD 

them. Their clothes are more conventional and not so susceptible 
to radical changes in style. For this reason, it is economy for a 
man to purchase good material and well-made clothing, as a good 
suit or overcoat can easily be made to do for two, or even more than 
two, seasons. If a twenty-five dollar suit will last but one season, 
and a fifty-dollar suit will last for two seasons, the latter should 
be preferable, although two of the cheaper suits could be had for the 
same money, simply because the more expensive suit will undoubtedly 
show its value, keep its shape better and prove more serviceable. 
In general men do not give their clothing as good care as do woimen 
theirs, which helps to reduce the clothing budget. 

"Made-to-Order" vs. "Ready-Made." — One great mistake 
made by many men consists of resorting to the made- to-order tailor. 
As soon as many men reach a certain financial station their first 
move is» to have their clothing made to order. To-day the art of 
making clothing has been standardized. Many large manufacturing 
tailors dealing in " ready-mades " employ cutters at a salary of ten 
thousand dollars a year. These cutters are experts and they cannot 
be excelled even by the cutters of the most fashionable made-to-order 
tailors. Eeady-made clothing is now made to fit almost any size 
or form, and with a few alterations any one may be fitted perfectly, 
regardless of size, without recourse to made-to-order tailors. 

Splendid ready-made suits may be purchased at from thirty 
to fifty dollars that could not be duplicated by a made-to-order 
fashionable tailor for much more. Unless, then, a man is deformed, 
or very abnormal in size or proportion, there is little excuse to 
patronize made-to-order tailors. This is the greatest leak in the 
budget for men's clothing. 

In General. — If it is possible, every adult should have two or 
more suits or overcoats and several pairs of shoes. Frequent changes 
effect considerable of a saving in wearing qualities. A pair of shoes 
worn constantly will wear out much quicker than they would if 
worn the same length of time but not continuously. The same 
is true of clothing. Cleaning, pressing and proper storage on coat 
hangers, etc., also conserve the wearing qualities of clothes. 

Extravagances in Clothing. — One may well ask oneself, " Just 
what is strictly necessary in my wardrobe? Just what can I do 
without? Is it necessary to have one or more evening dresses or 
party gowns? Is it necessary to have a dress-suit? Is it wise to 



CLOTHING 239 

pay a dollar, or three or five dollars for a necktie? Is it the right 
thing to dress the children so much better than their companions? 
Should I pay ten or fourteen dollars for a pair of shoes ? Must I 
have my shoes made-to-order ? Is it really necessary to purchase 
made-to-order corsets ? " These and a dozen similar questions, if 
honestly answered, might reveal many practical measures for reduc- 
ing the budget for clothing. 

Studying Materials and Construction. — In the more com- 
plete courses in Household Arts, girls are being taught the nature 
and character of different materials and fabrics that enter into the 
various articles of wearing apparel. There are a number of valuable 
books on textiles, and the making of clothing, in which any intelli- 
gent woman may now read upon these subjects and gain a knowledge 
that will be of practical value in the selection and care of clothing. 1 

Every woman should be able to distinguish between cotton and 
wool when manufactured into a garment ; she should be able to tell 
the approximate relation of one to the other in a mixture; she 
should know something about silks and other textiles used in making 
garments ; she should know of their relative wearing qualities, what 
shapes and what trimmings will launder well, how to remove stains 
and spots, and to protect from insects, and about prices. Armed 
with such information and a little experience she should be able 
to make a considerable saving in the budget for clothing. This study 
should apply to every item that makes up the family wardrobe. 

Outside Aids for Home Sewing. — Aside from the employ- 
ment of a professional dressmaker, those who attempt to make or 
repair or alter garments in the home, will find in the larger cities, 
firms that make a business of special work for the manufacturer, 
wholesaler, and dealer, and some of them cater to retail trade. The 
character of such service and the usual prices (1916) are indicated 
by the following: 

Button-holes, 3 to 10 cents each. 
Cording, 7 cents a yard. 
Hemstitching, 10 cents a yard. 
Mirroring velvet, 10 cents a yard. 
Picot edging, 10 cents a yard. 
Pinking, 2 cents a yard. 
Ruching, 3 cents to 5 cents a yard. 
Shirring, 3 cents a yard. 

*See Baldt, "Clothing for Women," Lippincott; and for proper laun- 
dering, spot and stain removal, see Balderston, "Housewifery" Lippincott. 



240 THE BUSINESS OF THE HOUSEHOLD 

Tucking, 1 cent to 2 cents a yard. 
Plaiting — price varies from 2 cents per yard for material under 3 
inches wide, to 8 cents for 12 inches wide, 18 cents for 25 inches wide, 
40 cents for 72 inches wide; for plaiting a skirt, $1 to $1.50, according 
to length. 

Buttons covered — plain flat and oval buttons covered with material 
furnished by customer according to size of button — No. 12 ( 5 / 16 inch in 
diameter) 10 cents a dozen; up to No. 50 (1% inches in diameter) 35 
cents a dozen. Fancy-shaped buttons at slightly higher prices. 

Other dressmaking services which may be secured outside the home 
include: Cutting, Hemming, Fluting, Ruffling, Smocking and Sponging. 

The Clothing Wardrobe and Budget. — The selection of the 
wardrobe is best accomplished by planning ahead for a period of 
two or three years on the basis of one's present wardrobe and one's 
income. One is thus able to determine, among the larger items, 
those things which will wear out this year and must be replaced 
shortly, the things that will wear out next year, and other items 
that may give further service, and to distribute one's heavier pur- 
chases more evenly over the individual years. In addition, replace- 
ment must be provided for the items which give relatively tem- 
porary service, such as hosiery. Knowing what one wishes to buy, 
and alloting a definite sum for clothing purchased which is set aside 
each month in a budget check, there is a plan at hand and money 
at hand to take advantage of special sales and thus secure additional 
economies. Watching the announcements of dealers is a regular part 
of such a clothing program, which has advantages similar to special 
knowledge of food markets. The detailed discussion of the par- 
ticular items of dress is treated elsewhere in this series of Manuals, 2 
but as an example of clothing budgets for a family the following 
is presented from the Personal Service bureau of a progressive 
metropolitan department store 3 which maintains a Textile adviser 
to aid customers on the problems of dress selection. The family's 
income is assumed to be $3000, and the allowance for clothing is 
15 per cent, or $450, of which the mother's clothing costs $165; the 
father's, $125; the son of nine, $60; the daughter of 13, $100. 

2 See Baldt, "Clothing for Women," Lippincott. 

3 William Filene's Sons Co., Boston, through whose courtesy these 
budgets are presented. The budgets are pricecL for the year 1916. 



CLOTHING 241 

Two Years' Clothing Budget for a Woman having about $3 a week 

for clothing — m , . 

C( ., & This Next 

bm ^ : Year Year 

Blue serge, a new one every year $25.00 $25.00 

Extra skirt 5.00 5.00 

Coat: 

Will last two years 29.50 

Hats: 

One summer and one winter hat 12.50 12.50 

Repairs on last year's hat 2.50 2.50 

Shoes : 

Summer, low white shoes, will last two years .... 4.00 

Low black shoes 4.00 4.00 

Winter, high black shoes 5.00 5.00 

Dress shoes, will last two years 4.00 

Bedroom slippers, will last two years . . . . 4.00 

Blouses : 

Crepe de chine 5.95 5.95 

Wash silk 2.95 2.95 

Two cotton waists at $2 4.00 4.00 

Dresses : 

Dinner dress, will serve with changes two years . . 29.50 

Serge for winter 7.50 7.50 

Morning, two at $2 4.00 4.00 

Two thin summer dresses at $3 6.00 6.00 

Skirt: 

White pique for summer 3.95. 3.95 

Petticoats : 

Two white petticoats at $1, will last two summers 2.00 

One silk 3.95 3.95 

Umbrella : 

Will last two years 2.50 

Negligee : 

Will last two winters 3.00 

Will last two summers 1.00 

Sweater : 

Will last two years 3.95 

Corsets : 

Two pairs worn alternately at $3.50 7.00 7.00 

Brassieres, four at 50 cents each 2.00 2.00 

Stockings : 

Six pairs 2.50 2.50 

Four pairs silk at 50 cents 2.00 2.00 

Underwear : 

Knit, three vests at 25 cents .75 .75 

Two union suits at $1 2.00 2.0U 

Muslin, four envelope chemises or combinations 

at $1 4.00 4.00 

Two summer nightgowns, cotton crepe, $1 2.00 2.00 

Two winter nightgowns, will last two years 2.00 

Sundries : 

Rubbers, shoe trees, toilet accessories, handker- 
chiefs, purses, repairs, cleaning, etc 8.95 9.50 

$165.00 $165.00 

16 



242 THE BUSINESS OF THE HOUSEHOLD 

Two Years' Clothing Budget for a Man at $125 a Year- 
en ., This Last 
kuit: Year Year 

One good suit each year to alternate with one from 

last year $35.00 $35.00 

Trousers : 

Extra 7.50 7.50 

Overcoat : 

Will last for at least two years 30.00 

Raincoat: 

Will last several years 16.50 

Hats: 

One for summer, $3 

One for winter, $3 6.00 6.00 

Shoes : 

Three pairs at $5 15.00 15.00 

Shirts: 

Six at $1.50 each 9.00 9.00 

Underwear : 

Three summer union suits at $1 3.00 

Next year will only buy two summer union suits. 2.00 

Two union suits for winter, $1.50 3.00 

Next winter will need three winter suits 4.50 

Socks : 

Twelve at 25 cents 3.00 3.00 

Sweater 5.00 

Umbrella 3.00 

Pajamas: 

Two for summer at $1.50, will last two summers. . 3.00 

Two for winter, will last two winters 3.00 

Ties, collars, garters, buttons, gloves, repairs on shoes, 

etc 10.50 10.55 

Blanket Bath Robe, $3.95 ; slippers, $1 4.95 

$125.00 $125.00 

Two Year Budget for 9-year-old Boy at $60 — 

~ tJ This Last 

Suits : Year Year 
For school, a winter corduroy suit with two pairs 

of trousers $5.95 $5.95 

Blue serge suit for dress-up 7.50 7.50 

Summer, khaki suit with extra trousers 4.00 4.00 

Two trousers at $1 2.00 2.00 

Overcoat : 

Will last two years 7.50 

Rubber Coat: 

Will last two years 3.00 

Shoes: 

Winter high storm boots 3.00 3.00 

High dress-up boots 3.25 3.25 

Dancing shoes 2.00 2.00 

Sneakers 1-35 1.35 

Boy Scout play shoes 2.50 2.50 



CLOTHING 



243 



This 

Blouses : Year 

Five at 50 cents, with soft collars $2.50 



Two at 75 cents, white, for dress-up. 
Hats : 

Winter cap 

Summer wash hat or cap 

Winter dress-up hat 

Swimming Suit: 

Will last two years 

Sweater : 

Should last two years 

Blanket Bath Robe 

Stockings : 

Twelve pairs at 25 cents 

Underwear : 

Three summer union suits at 50 cents 

Three winter union suits at $1 

Pajamas: 

Two summer pajamas, will last two years, $1 each 

Two winter pajamas, will last two years, $1 each 
Collars : 

Four for 50 cents; school blouses have collars 

attached 

Ties: 

Three at 25 cents each 

Sundries: 

Garters, buttons, handkerchiefs, repairs on shoes, 
etc 



1.50 

.50 

.50 

1.00 

1.50 



3.00 

1.50 
3.00 

2.00 



.50 

.75 

2.70 



$60.00 



Last 
Year 

$2.50 
1.50 

.50 

.50 

1.00 



3.50 
2.50 

3.00 

1.50 
3.00 



2.00 

.50 
.75 

2.70 
$60.00 



Year Budget for 13-year-old Girl at $100 — 

Coat: 

Winter, $12.50 $12.50 

Raincoat : 

Rubber 3.00 

Hats: 

A panama for summer — niay be worn more than one season. . . 3.95 

A velour hat for winter 3.95 

A stitched plush hat for school 1.50 

Dresses: 

For summer, four bloomer dresses of gingham at $2 each 8.00 

Wears bloomer dresses both winter and summer for play and 
school. 

White pique or poplin dress for best 5.95 

For winter, blue serge sailor suit with bloomers 7.50 

Challis dress for dancing and Sunday 8.75 

Sweater : 

This will easilv last two vears. 

Skirt: 

Pleated serge skirt to wear with middy blouses 2.50 

Middies : 

Three at $1 3.00 



244 THE BUSINESS OF THE HOUSEHOLD 

Bathing Suit: 

Will last two years $3.00 

Bloomers : 
For gym. bought last year; will last two years. 

Bath Robe: 

Blanket robe bought last year; will last two years. 

Negligee : 

Cotton crepe 1.00 

Knit Underwear : 

For summer, vests 25 cents, two this year .50 

(Three next year.) 

For winter, three union suits, $1.50 4.50 

Next year but two winter suits, using most worn one on hand 
for mending. 

Undermuslins : 

One slip 1.00 

One combination corset cover and drawers 1.00 

Corset : 

Corset waist 1.00 

Shoes : 

High black shoes for school in winter 3.50 

Rubbers .70 

High dress-up shoes for winter 3.65 

Sneakers for gym 1.25 

White canvas shoes for summer 2.50 

Play shoes for summer, elk soles 1.50 

Nightgowns: 

Two cotton crepe at 69 cents for summer 1.38 

Two flannelette at 69 cents for winter 1.38 

Stockings : 

Twelve pairs at 25 cents 3.00 

Umbrella : 

Will last several years 1.00 

Gloves : 

White silk for summer .75 

Woolen gauntlets for school, winter .75 

Dress-up fleece-lined mocha gloves 1.00 

Sundries: 

Hair ribbons, garters, handkerchiefs, repairs on shoes, etc 5.00 

$99.96 

The price of clothing of all kinds increased enormously dur- 
ing the war. 1922 however, has seen a very considerable drop 
in clothing prices, so that the foregoing budgets are not greatly 
lower than prevailing prices, although the clothing budgets at 
the peak of prices March, 1920 was 177 per cent higher than 
in July, 1916. 4 

4 See " Clothing— choice, cost, care" by Mary Schenck Woolman, Lippincott. 



CLOTHING 245 

QUESTIONS 

1. What factors are to be considered in the study of the necesisary clothing 

for a family? 

2. Will it pay a family in your town to make the clothing for the children ? 

Why, or why not? What type of a family are you considering? 

3. Are there any articles of clothing for women that may be made at 

home more cheaply than they can be purchased ? 

4. Which is more important, fashion or economy in dress? May either be 

disregarded ? 

5. Under present conditions, is it better to buy expensive or medium- 

priced garments? What conditions enter into the decision? 

6. How would you answer this question in relation to men's clothing? 

7. What should be the cardinal principle in the matter of dress? 

8. What can be said in favor of special tailor-made garments for women 

as well as for men? In favor of "ready-to-wear" garments? 

9. Why should a woman's clothes budget be larger than that of a man? 

10. What would you call extravagance in clothing in your own case? 

11. Should a business woman be expected to use her leisure in sewing? 

PROBLEMS AND DEMONSTRATIONS 

1. How much do dressmakers earn in the community in which you live? 

2. How much a year does your family spend for dressmaker's services? 

3. How much a year is expended for your own clothes? 

4. How much a year does it cost your entire family for clothing? 

5. How much a year do you think you should allow for the clothing for 

your family, based upon income and other expenditures? 

6. How much is spent for millinery per year in your family? 

7. Can you save any part of the latter expenditure through the ability 

of any one in your family who might make or trim a hat? 

8. Secure as much information as you can in regard to the following tex- 

tiles and other fabrics which names you know: Cotton, linen, flannel, 
wool, shoddy, crash, worsted, challie, gingham, silk pongee, percale, 
mercerized cotton. 
9. Is there any agency in your community where hemstitching, plaiting, 
tucking and button-covering may be done ? 

REFERENCES 
Baldt, L. I., Clothing for Women. J. B. Lippincott Co. 
Burton, School Sewing Based on Home Problems. Vocational Supply Co. 
Cooke and Kidd, Dressmaking in the Schools. Longmans, Green. & Co. 
Flagg, Handbook of Elementary Sewing. Little, Brown & Co. 
Gibbs, Household Textiles. Whitcomb & Barrows. 
Hicks, Garment Construction in the Schools. The Macmillan Co. 
Kinne and Cooley, Shelter and Clothing. The Macmillan Co. 
Kinne and Cooley, Clothing and Health. The Macmillan Co. 
Laughlin, C. E., The Complete Dressmaker. Appleton. 
McGlauflin. Handicraft for Girls. The Manual Arts Press. 
Patton, F., Home and School Sewing. Newson & Co. 
Watson, K. H., Textiles and Clothing. American School of Home 

Economics, Chicago. __ 

Woolman, M. S., Hints on Clothing (Bulletin). Teachers College, New 

York City. mm ^ „ 

Woolman, M. S., A Sewing Course. Frederick A. Fernald. 
Woolman and McGowan, Textiles. The Macmillan Co. 
Circular 36. The True Clothes Moth. Bureau of Entomology, Dept. of 

Agriculture, Washington, D. C 
17 



PART III 
FACTORS IN THE FAMILY BUDGET 

CHAPTEE XXI 
THE HOUSEHOLD WORKING EQUIPMENT 

The purchasing agent for household equipment is usually a 
woman. The household manager should know best the needs of the 
house and the family. She then must know what is in the market 
from which to supply these needs. But this means knowledge of 
a multitude of articles from which she must choose, whether her 
purchase be priced in cents or hundreds of dollars. 

Good buying rests upon knowledge of the needs and what is in 
the market, but choice is affected by many factors among which 
only a few can be mentioned. Economical buying means regulated 
buying. 

Quality. — It is sometimes said that " The best is none too good," 
but the best at any one time means adaptation to the buyer's con- 
ditions. An article subjected to constant hard usage must be 
heavier or tougher than one used only occasionally or in gentle 
ways. A rug at the front door is chosen differently from one in the 
guest room. 

Quantity. — While buying in large quantities may mean reduc- 
tion in price, a larger number or amount than can be successfully 
used within a given time without deterioration means loss. Modern 
houses and apartments are not furnished with proper facilities for 
large storage. Thus lack of storage prevents having a large stock of 
china, linen and bedding as did our grandmothers. Other consider- 
ations may dictate buying smaller quantities — thus insect pests may 
destroy stored fabrics. 

Whether intelligent care can and will be given may decide 
which rug or which table shall be bought. 

Personal standards may determine quantities. Thus, a family 
of small income does not need in number or latest fashion, the silver, 
glass and china required for formal entertainments. 

If storage room and the budget allotment allow, there are certain 
" constants " that may wisely be bought in the largest usable quan- 
tity. Among these may be mentioned soap, because it " uses better " 
when dry ; thread, buttons, pins, tapes, cottons and dress goods in the 
family where children's clothes or underwear are made; canned 
246 



THE HOUSEHOLD WORKING EQUIPMENT 247 

goods; stationery; table linen and towels at sales of discarded 
patterns or shop-soiled articles. 

As with dress, so with household equipment, if happiness de- 
pends upon the possession or show of the latest fashion in every 
purchase there cannot be real economy in buying, for the factor 
of durability is ruled out. 

Furniture should be judged not only by its artistic lines and its 
harmony with the general scheme of the house and family life, but 
because of durable material, firm enduring construction, wearable 
and cleanable finish — not too heavy to be moved nor too frail to fulfill 
its evident purpose. A dining chair must be low enough to let the 
knees go under the table and strong enough to hold a heavy man. 

Use and Care. — Storage is a large factor in the care of posses- 
sions, for a place is occupied by and must be considered in relation 
to every article of purchase. Knowledge, strength and time are 
other important factors of care. If the purchaser does not know how 
to care for the expensive rug, she should not buy it; if the dining 
chairs she likes are too heavy for her to move and she does her own 
work, she should choose others; the milk pitcher which will not 
admit the dishcloth over even her finger in order to clean the 
bottom is not a suitable article of purchase. 

Face towels are not made to wipe up floors nor to clean shoes. 
Appropriate usage, intelligent care, with a reasonable demand on 
strength and time, should help to decide the question of what and 
how much to buy at any one time. 

Renewals. — However wise the purchase be, furnishings and 
supplies will wear out and must be replaced or renewed. System 
in management will make possible the purchase of renewals before 
the stock is exhausted; yet it should be so calculated that not too 
many purchases have to be made in any one week or month. 

The budget allowance for repairs and renewals should be as care- 
fully planned and adjusted as for any other item. 

Trademarks. — Value in material, design, construction and fin- 
ish, which is made possible by care in manufacture, is worth recog- 
nition by a trademark. In general, no manufacturer of poor goods 
will acknowledge or stand behind them. This shows the value of a 
well-established trademark. A trade name may or may not be a 
mark of value to the purchaser. If she has tested goods bearing 
a certain mark and found them worthy to her then that mark is a 
guide for future purchase. She must, however, be wary, for quality 
does not always remain uniform. 



248 THE BUSINESS OF THE HOUSEHOLD 

In table-linen, china, textiles, silver and similar articles, it is 
wise to select from "open stock" patterns, if one wishes to keep 
to the same in renewals. 

Arrangement of Equipment. — Having bought the equipment, 
attention should be paid to its best arrangement in the house, for 
on this depends largely not only the beauty of the home but the 
time and labor expended and these are items which call for a large 
outlay of money. Especially should the best thought be given to 
the working centres in their relations to each other, to the require- 
ments of each worker and to the family life. 

ISTo one room so lends itself to thought and improvement along 
these lines as does the kitchen, and it is wise therefore to study 
in detail the proper organization of this most important part of the 
household's working equipment. 

THE ECONOMICAL KITCHEN 

Time and energy saved is money saved, and since the kitchen 
is the working centre of the house a study of the business aspects 
of the household may include working conditions in the kitchen. 

The Monetary Value of Household Labor. — The business 
man has not always figured the cost of employed labor as closely as 
that of equipment, whether in the form of raw or finished material. 
Now as accurate cost-keeping systems have developed whereby the 
manufacturer may know the exact cost of every one of his products, 
labor has been appraised at its exact cost in determining the cost 
of any given manufacture. In business, labor and time are prac- 
tically synonymous, as the time employed in a given operation 
determines the cost of labor on that operation. 

The household manager in her own home does not place a mone- 
tary value upon the time she spends in work, but her time does 
have a true monetary value, even if she does not recognize it ; 
a reduction in her working hours allows her more time for the 
personal interests of her family and herself. When she hires a 
worker, the cost of service in the home is properly charged as an 
operating cost; if an improved plan for the day's work or for the 
arrangement of the house results in the saving of the maid's labor, 
the maid can assume some of the mistress' work, and so free her for 
other duties. It is perfectly feasible so to arrange and equip a home 
that the work will be reduced to a minimum. For example, anyone 
who has ever lived in both a house and an apartment knows how 



THE HOUSEHOLD WORKING EQUIPMENT 249 

much less work there is in the latter as compared with the former. 
With proper arrangements and equipment, a maid may in some 
cases be dispensed with, either with or without the employment 
of outside labor for two or three hours a day to " do up " the 
rougher work. Where no maid is employed, and the mother does 
the work, the proper arrangement of a house means more time for 
her. For these reasons one should study house-planning and espe- 
cially the making of an " economical " kitchen. 

Conditions Not Always Impossible to Change. — It is prob- 
ably true that most families are confronted with house or apartment 
conditions that seem fixed and incapable of change. In the case 
of the rented house or apartment, we may have to take the rooms 
as we find them, and often, if not generally, there is no opportunity 
to change the position of either the sink or the stove. Plumbers 
avoid placing sinks and pipes in outside walls for fear of freezing 
temperatures, and so we often find the sink on an inside wall and 
consequently dark. Chimneys frequently are built against ian 
outside wall, and so we find stoves a long way from the sink. 

In a rented house landlords may be persuaded to make changes 
that might not be considered in an apartment, but aside from 
the sink and the stove much may be done by the aid of improvised 
shelves and ready-built cabinets and tables to reduce the amount 
of work in the kitchen. 

For those who own their own homes, the problem of efficient 
arrangement is much simpler. Most people shun the thought of 
remodelling a room and the tearing out of a partition assumes an 
importance far beyond the cost of its removal. Fifty or one hun- 
dred, dollars may be all that would be needed to make a kitchen an 
efficient workroom, with a saving, in the work of the housekeeper, 
that will pay for the alterations in a short time. At the average 
price for household labor, if one can be saved one hour a day, how 
much will it be worth in a year ? Obviously, a large sum. 

The installation or removal of a partition ; cutting an additional 
window; blocking up a door; making cabinets and shelves are not 
obstacles that cannot be overcome, or problems that cannot be 
solved, if one owns one's own house. 

Those who have their homes yet to build, of course, are in the 
best position to take advantage of the thought that has been ex- 
pended in the planning of model kitchens, and in the light of the 
work that already has been done on this problem, it is almost inex- 



250 



THE BUSINESS OF THE HOUSEHOLD 



cusable for an architect or builder to erect a dwelling containing 
an inconvenient time- and labor-consuming kitchen. Many im- 
provements are being made in apartment houses that a.re equally 
applicable to the average house. One who contemplates building 
a house should first investigate the improvements of the modern flat 
or apartment house. 

Every possibility of saving steps should be considered. This 
has been demonstrated by the use of the pedometer, which shows 
that the housekeeper travels several miles a day in her work, and 
most of this is done as she travels about the kitchen and from kitchen 
to dining-room and back. 

The Efficient Kitchen. — By the term " efficient kitchen * 



STOVE 
UTENS/L 
CLOSET 




/ ROWOFSMML W/ND0W3 NEAP Cf/L/NG ON WALL 
BETWEEN MTCNEN AND SERWCE P4N7PY TO 1/6RT 
AND A/R THE LATTER 

2 SL/D/NG fiWaOtKS QVEP DPA/N-BOARDS 
POR PECEPT/ON OF ClEAtf. 0/SNES 



fCELESS /CE-BOX 
PARCEL DELWEPY 



D/WNG ROOM 



Pig. 22. — Plan of an efficient kitchen 

meant one that will reduce to a minimum the time and labor spent 
upon kitchen operations. Needless to say that such a kitchen 
means added conveniences. 

Fig. 22 represents a plan for such a kitchen. In this illustration 
the kitchen is 8.10 X 16 ft. long. It is separated from the dining- 
room by two pantries, the " service pantry" and the storage or 
kitchen pantry. The two pantries occupy the length of the kitchen, 
each pantry being 4 feet 10 inches wide. 

Many steps may be saved by this arrangement of the pantry. 
Quite frequently the pantry is placed in the position occupied by 
the built-in cabinet in the diagram, thus necessitating many trips 
from the extreme end of the kitchen through door into the dining- 



THE HOUSEHOLD WORKING EQUIPMENT 251 

room. With the pantry located as in the diagram the table in the 
dining-room may be set from the pantry shelves with a minimum 
of labor. 

The Stove. — This is placed between two windows, the oven, 
if it has one above the range, being placed to the left and thus 
protecting open burners from the window ; and the open gas plates, 
ot range, being away from other window so as not to be affected 
by a direct breeze. Under window should be placed the kitchen 
table, so as to be handy to the stove. An important feature of 
every gas stove or coal range should be the small detachable shelf 
at the right for resting pots and pans removed from the open fire or 
flame. Some stoves do not have this shelf, but it is too convenient 
to be done away with, and every housewife should demand that her 
stove be equipped with such a shelf. 

The Radiator and Water Boiler. — The radiator may be 
placed under the table or attached to the wall, which makes cleaning 
easier. If a hot-water boiler is used, it may be placed out of the 
way in the upper left hand corner, but with sufficient room behind 
it to allow for easy cleaning. It pays to cover any such boiler with 
an insulating jacket of canvas and felt, to prevent the cooling 
of the water by radiation. The opening of the door with its inrush 
of cold air will drive the warm air from the radiator back into the 
room, while any possible draft from windows will have the same 
effect. If the boiler is used the window will have a similar effect. 
A boiler may be suspended from the ceiling or enclosed in a closet. 
Both positions tend to save fuel. 

Coal stoves are now made so that the ashes may be dropped 
from the ash-pit, through a chute directly into a receptacle in the 
basement. Such an arrangement would save much dirt and labor 
in the kitchen. 

Sink. — The sink is against an inside wall and with the drain- 
boards; the location in reference to the pantry greatly facilitates 
the washing of dishes. Fig. 23 represents the inside kitchen 
wall that separates the kitchen from the service pantry. Notice 
the double drain-board and the sliding-window over each drain- 
board. This window slides into the wall partition, and as the 
dishes are wiped at the drain-board they may be passed through 
this window and placed upon a shelf inside the service pantry. 
When the task is completed, the dishes are arranged in their proper 
places upon the pantry shelves. This reduces the usual steps taken 



252 



THE BUSINESS OF THE HOUSEHOLD 



in dish-washing operations to a minimum. Two or three steps from 
the sink will reach the stove. 

Most sinks are entirely too low for the average woman. Manu- 
facturers are beginning to heed the call for higher sinks, however, 
so that if insisted upon they may be obtained. A housekeeper should 
not be content to use a sink that requires much bending. If a new 
one cannot be substituted, the old one may be raised by placing blocks 
under the pedestals. If there is a back to the sink, the pipes leading 
to the faucets may have to be changed at the same time that the 




Fig. 23. — Sink with drain-boards at right and left, and with sliding: windows 
above each drain-board which open into the service pantry 



drain-pipe is raised. Devices to put under the dishpan and thus to 
raise the working surface for dish-washing operations may be pur- 
chased or made at home. 

The drain-board is an important part of the sink to be con- 
sidered. If possible, a sink should be equipped with a right and a 
left drain-board ; the former to hold the unwashed dishes, and the 
latter to receive the clean dishes. If only one board can be had, 
let it be on the left side of the sink, as it is much handier to pass 
dishes from the pan to the left than it is to pass them to the right. 



THE HOUSEHOLD WORKING EQUIPMENT 



253 



A small table, wheel-tray or a drop shelf may supply the missing 
drain-board. 

Sink Closet (Fig. 24). — This is a small closet built into the 
kitchen wall for the storage of cleaning implements, powders and 
soap, dish-cloths, dish-pans and everything used in and about the 
sink. In this closet one shelf is sufficient for floor cleansers, waxes 
and similar preparations. Space is left below for hanging brooms, 
mops, and dust-pans. Fig. 24 shows an interior view of this closet 
which is equipped with two or three narrow shelves with space below 
for hanging the dish-pan and other utensils. 

Fig. 24 Fig. 25 




Pig. 24. — Mop, broom, pail and sink closet 
Fig. 25. — Stove utensil closet 



Stove Utensil Closet (Fig. 22). — This closet is also built into 
the wall. The interior is shown in Fig. 25. Heavy pots and kettles 
used on the stove, together with pans, may be stored in this closet. 
Pie plates and cooking dishes may be stored on the shelves. The 
heavy articles should be stored about at hip-level. 

Kitchen Cabinet (Fig. 22). — Between the Sink and Stove 
Utensil Closets may be located the Kitchen Cabinet. This prefer- 
ably may be built into the wall, or it may be a portable cabinet. 
The kitchen cabinet serves a useful purpose in the preparation of 
food material for the processes of cooking, and with the stove near 



254 



THE BUSINESS OF THE HOUSEHOLD 



at the right and the sink at the left, this location of the cabinet 
is a convenient one, especially as light from the window brightens 
this end of the kitchen. 

Kitchen Tables. — Many prefer a kitchen table, with convenient 
shelf room, instead of a cabinet. Tables are now made with various 
combinations, such as drawers, bread-boards, a swing-seat and hooks 
around the sides for hanging utensils. Enamel-top tables are espe- 
cially desirable. 

Built-in Kitchen China Cabinet (Fig. 22). — A built-in glass 
cabinet placed near window and door opening onto the porch may 




FIG. 26. — Wall of service pantry dividing" same from kitchen 

be used for the better china used in the kitchen, including decorative 
porcelains and delftware. 

The Service Pantry (Fig. 26) shows the Service Pantry wall 
next to the kitchen. This pantry is intended to supply the dining- 
room, although perishable and temporary food supplies to be used 
in the kitchen and not kept in the refrigerator, should also be kept 
on the shelves shown in the illustration. Notice the sliding-win- 
dows above the shelf that open over the drain-boards of the kitchen 
sink. Fig. 27 shows the Service Pantry shelves next to the dining- 
room. Supplies and china for the dining-room should be kept on 
these shelves. Note the broad lower shelf for cutting bread and 
cake, and for preparing special foods and side-dishes. 



THE HOUSEHOLD WORKING EQUIPMENT 



255 



The Refrigerator (see Fig. 28) representing the outside end 
wall of the Service Pantry. In the left-hand corner is the refriger- 
ator, with an outside door on the kitchen porch for the reception 
of the ice. This arrangement obviates the necessity of the iceman 
coming into the house. 

The Iceless Ice-box (Figs. 28 and 29) show a box-like device 
built upon the outside of the house and opening into the Service 
Pantry. It may be built of two thicknesses of wood with an air 
space between. A shelf doubles the storage space. Ventilators 
covered with cheesecloth to keep out dust admit fresh air. The 




Fig. 27. — Side of pantry, next to dining-room 

purpose of this box is that of a storage place for food that may 
be subjected to the outdoor temperature, if ice is unobtainable, or 
during seasons of the year when ice may be dispensed with. 

The Evaporation Refrigerator. — This home-made device, 
while not shown in the kitchen plans herewith, is now used success- 
fully in many parts of the South and elsewhere. This convenience 
comprises a simple wooden frame covered with wire screening, and 
provided with a door; this entire frame has a covering of canton 
flannel, burlap, Indian-head cloth or linen crash made to fit so that 
little air is admitted into it. Wicks made of the same material as the 
cover are tacked on top of each side of the cover and extend over 



256 



THE BUSINESS OF THE HOUSEHOLD 



into the pan of water sitting on top of the frame. This water is 
taken up by the wicks and carried down on the sides of the cover by 
capillary attraction; then evaporation takes place, drawing the 
heat from the inside and lowering the temperature. The more 
rapid the evaporation the lower the temperature. Tests have 
shown if the refrigerator is kept in a place where the air circulates 
around it freely a temperature of 50 degrees Fahrenheit may be 
obtained. 1 



WINDOW- P/l/OTED ON CENTER 
TO LIGHT AND A/R PANTfly 



ICELESS ICE-BOA DOOR 
(DOUBLE) WITH FLUSH ON 
THE INSIDE WALL 




ICEBOXINMAIN 
PANTRY SUPPLIED 
FROM OUTSIDE 



PARCEL DELIUERY PECEPTACLE 

DOOR FOR CLOTN/NG 
AND LAUNDRY CHUTE 



DOORS TO GROCERY 
SPACE 



BOX WHICH PECEII/ES 
ARTICLES FROM CHUTE 

Pig. 28. — Interior end of main pantry 

Iceless Refrigerator. — A power refrigeration attachment has 
been devised, which is operated by an electric motor or gas engine, 
and which can be applied to almost any refrigerator. The machine 
can be located in the basement, if desired, and attached to the 
different refrigerators, or can be placed immediately in connection 
with a single refrigerator. Iceless refrigeration insures dry air, 
an even temperature of 45° F. or lower, so that fresh, sweet, whole- 
some food results. 



*For detailed directions with working drawings of material, etc., see 
Rhea C. Scott, "Home Labor Saving Devices" Lippincott. 



THE HOUSEHOLD WORKING EQUIPMENT 



257 



The initial cost is great, but in many families the saving in ice 
and food would in time justify the expenditure. 

The Delivery Receptacle. — This is indicated in Fig. 22 under 
the door to the Iceless Ice Box. Fig. 30 shows the interior arrange- 
ment. Like the refrigerator this 1 receptacle opens upon the kitchen 
porch. Its purpose is that of a receptacle in which delivery boys may 
leave groceries or other bundles, including laundry. The small, 
lower shelf is intended for milk, butter, meat and similar articles. 




projects o/v oi/rs/D£ or 

MOUSE, AMD OPEA/S //VPO 

/W/V p/wr/?y 

/-£ OUrS/DE V£AT/L/!T/0/)/ 

Fig. 29. — Scheme of iceless ice-box 

The next shelf above is to be used for coarser groceries, including 
vegetables, while the third or upper shelf is intended only for laun- 
dry or clothing, that might be injured from drippings if placed 
below milk, meat or moist groceries. Having bundles left in this 
receptacle obviates the necessity of going to the door every time 
a delivery boy comes to the house. 

The top shelf is supplied with a door of its own easily opening 
inwards. This is intended as a chute, so that laundry and valuable 
parcels need not be accessible to anyone who comes upon the kitchen 
porch, but may be pushed within the house by the deliveryman. 
The parcel will drop into a box upon the floor and can be protected 
17 



258 



THE BUSINESS OF THE HOUSEHOLD 



from the floor of the pantry (Fig. 26), or the box may be dispensed 
with. 

The Storage Pantry (Fig. 22). — This is intended for the stor- 
age of food material purchased in bulk or in quantities. Canned 
goods purchased by the case and articles not for immediate con- 
sumption may be stored in this pantry. Bins are also provided, for 
vegetables, such as potatoes, turnips, beets, etc. The pantry is also 
used for immediate kitchen needs. The kitchen worker uses this 
pantry as her base of supplies, while the dining-room needs are 
directly supplied by the Service Pantry. 




LAUNDftY AND 
CLOTMNG © CHUT£ 



¥A 



Wft 



[D 



GftOC£/?/£S 



Z2 C 



_J L fo /ffl&f- 



BOTTLES £TC. 




Fig. 30. — Inside view of delivery receptacle; inside doors open into service 
pantry and can be fastened securely with catches 

Doors. — A doorway connects the two pantries. No door need 
be hung unless preferred. A glass door should be used between 
the kitchen and storage pantry. No door need be hung between 
the service pantry and the kitchen, but if one is used it should be 
a swinging-door; that is, one opening both ways. The same type 
of door should be used between this pantry and the dining-room. 
All these doors should be smaller than the regulation 3-foot door. 
The outside kitchen door opens upon the kitchen porch. 

Windows. — The three kitchen windows light the kitchen and 
also the service pantry by special windows (1) and the sliding service 



THE HOUSEHOLD WORKING EQUIPMENT 259 

windows (2) (see Fig. 22). Over the refrigerator another window 
helps to light the pantries. This window should swing on a central 
pivot. The glass door of the Storage Pantry lights this room suffi- 
ciently, and the doorway into the Service Pantry supplies also 
light from the end window. 

The length of the kitchen could be reduced by doing away 
with the Storage Pantry, which would reduce the dimensions to 
8 5 / 6 ft. X HV5 ft. This would also cut off the left window shown in 
Fig. 22, leaving a poorly lighted room, unless windows could be 
on the cabinet side. 

Laundry Chute. — This device is intended for houses and not 
apartments. Soiled linen may be dropped down the laundry chute 
into a receptacle or bin in the basement laundry, thus saving the 
carrying of a basketful of clothes. 

The Electric Fan. — No kitchen, where electric current is avail- 
able, should be without an electric fan. One or two shelves in 
convenient and advantageous positions might be installed so that 
the fan can be moved easily from time to time as necessity requires. 
A light and small-sized fan should be used in the kitchen so that 
it can be lifted about easily. A metal portable shelf is in the 
market, which requires only a nail or screw to hold it in any place 
desired. 

When the heat of the kitchen is unbearable such a fan will 
prove a wonderful help. It may be used to establish air-currents 
in the proper direction so as to drive the hot air from the stove away 
from the pantry and dining-room. In winter it may be used to 
diffuse the warm air about the room that comes from the radiator 
or stove. 

Dish-washers. — Some housewives have found the hand 
machines satisfactory, although their efficiency is questioned. The 
economy of an electric dish-washer depends upon the type used, and 
the size of the family. Many of the machines are cumbersome, and 
with a small family, require about as much work to stack the 
dishes and clean the washer after use as would be necessary to 
wash the dishes by hand. With a family of six or more, a washer 
run by motor, and piped for hot water* supply and disposal of waste 
water, will prove a great economy ; dishes may be washed in it once 
a day to advantage. A small washer run by motor has been designed, 
which may be placed upon the drain-board .of the sink and is there- 
fore convenient for the water-supply and also to the sink for drainage 



2G0 THE BUSINESS OF THE HOUSEHOLD 

purposes. The washing of dishes by hand and standing them in 
wire racks, after rinsing with very hot water, to dry from their own 
heat, is probably the best method in the small household. 

Summary. — One should study one's own kitchen with a view to 
remodeling it, rearranging or replacing its furniture so as to reduce 
both time and work. The principles underlying the efficient kitchen 
apply as well to the domestic laundry, to the work of cleaning the 
house, and its other tasks. 2 With the aid of proper equipment, 
labor-saving devices and systematic methods of work, so much 
may be accomplished in reducing labor that the budget allowance 
for " Service" may be greatly reduced, while the home life is thereby 
kept more democratic. 

QUESTIONS 

1. What principles should control in buying towels? A chair? Silverware? 

China? 

2. What should be the location of the sink in relation to the stove? 

3. What factors should be considered in selecting a gas-stove, or coal-stove? 

4. What factors should be considered in relation to a refrigerator? 

5. What kind of iceless ice-boxes can you describe? 

6. How much is included in "an economical kitchen"? 

7. Where should radiators be placed in a kitchen? Where hot- water 

boilers ? 

PROBLEMS AND DEMONSTRATIONS 

1. Draw a sketch of your idea of a model kitchen showing its relation 

to the pantry and dining-room. 

2. Why do you think this plan a good one? 

3. Draw a sketch of your kitchen at home, showing the arrangement of 

its furniture. Make measurements of floor plan, height of tables, 
sinks, etc. 

4. Draw a sketch, or describe a method by w T hich the kitchen at home might 

be remodeled to advantage or bettered by the addition of shelving or 
cabinets, or by changing the arrangement of the furniture. 

5. Study the arrangement of your home equipment with economy of steps, 

movements and time in mind, while going through, some imaginary 
work, such as making a custard, washing dishes or making molasses 
candy. 

6. Have you ever counted the steps necessary to do any one process in 

house care? 

7. If so, can you find a way to lessen them, without injury to the result? 

8. Apply these principles of efficient work to the floor plan of a domestic 

laundry. 

2 See Balderston, "Housewifery, A Manual of Practical Housework" 
Lippincott. 



THE HOUSEHOLD WORKING EQUIPMENT 261 

REFERENCES 

Balderston, L. R., Housewifery. J. B. Lippincott Co. 

Balderston, L. R., Laundering. L. R. Balderston, Phila. 

Bevier, I., The House, Its Plan, Decoration and Care. American 

School of Home Economics, Chicago. 
Chambers, M. D., A Guide to Laundry Work. Boston Cooking School 

Magazine, Boston. 
Child, G., The Efficient Kitchen. McBride, Nast & Co. 
Donham, S. A., Marketing and Housework Manual. Little, Brown & Co. 
Frederick, C, The New Housekeeping. Doubleday, Page & Co. 
Keene, E. S., Mechanics of the House. McGraw, Hill Co. 
Kittredge, M. H., Housekeeping Notes. Whitcomb & Barrows. 
Kittredge, M. H., Practical Home Making. The Century Co. 
McLeod, S. J., The Housekeeper's Handbook of Cleaning. Harper 

& Bros. 
Richards, E. H., The Cost of Cleanness. John Wiley & Sons. 
Scott, Rhea C, Home Labor Saving Devices. J. B. Lippincott Co. 
Farmers' Bulletin 927, Farm Home Conveniences. U. S. Dept. of 

Agriculture. 
Farmers' Bulletin 270, Modern Conveniences for the Farm Home. 

U. S. Dept. of Agriculture. 



CHAPTEE XXII 
SYSTEM IN THE HOME 

Successful financial management rests in part upon the adop- 
tion of a well-considered system of household organization. The 
keynote of the housekeeping of the coming generation will be " effi- 
ciency." Every successful business has been built upon system, and 
without system business cannot continue to thrive. 

System must obtain in the home as in business. The economic 
waste of time and material and energy in the average home is almost 
beyond computation. There comes a time in the history of nations, 
as in belligerent countries to-day, when the Government demands 
of its people an account of their stewardship in their family lives. 
Terrible as is war, it is sometimes a corrector of abuses that have 
existed for centuries, and, in a similar manner, the economic 
pressure of the present may literally force our American people to 
adopt a saner method of living. 

The old-fashioned housewife, noted for loading the family table 
three times a day with a truly wonderful assortment of dishes, is 
rapidly passing into fiction and history. We are awakening to the 
fact that we do not attempt to feed our families, but that our main 
ambition has been to satisfy their appetites; a distinction with 
a decided difference. The body could be nourished better with a 
part only of the food served on many tables, and at a correspond- 
ing financial saving. In other words, many families serve more 
food than is necessary, and many people eat more than is required 
to nourish the body, so that in either case there is a financial waste. 
This is a fair example of the haphazard methods and lack of system 
employed in the average American family of the present day. 

The proper kind of system not only means lessened financial 
expenditures, but a lessened expenditure of physical energy and an 
increased period of leisure for the household manager. System 
need not mean red-tape ; it need not convert the home into a business 
office. Hard and fast routine that makes cogs of every member of 
the family in a complicated domestic mechanism is uncalled for, but 
definite plans for the business of the home are decidedly needed. 

Grandmother's System. — Grandmother had a system adapted 
262 



SYSTEM IN THE HOME 263 

to her needs, but practically unknown to the present generation. 
As near as the writer can remember, it was about as follows : 

Monday, washday; Tuesday, ironing; Wednesday, baking; 
Thursday, mending; Friday, cleaning; Saturday, baking; Sunday, 
Lord's day. 

Then, there were seasonal periods devoted to certain activities, 
such as spring and fall house-cleaning; weeks set aside for the 
dressmaker ; others in the early fall for canning and preserving, and 
so all of the more important household activities were assigned to 
certain days of the week or to certain seasons of the year. 

Since grandmother's day, economic and social conditions have 
changed. The social horizon of women has widened marvelously. 
The modern apartment has revolutionized housework, greatly add- 
ing to the leisure of the household manager. The public bakery 
has almost done away with "bake-day," while the delicatessen, often 
pernicious in its influence, has robbed many a young matron of 
her normal opportunity of learning to cook; but the latter influence 
will in time be overcome by our domestic science schools. Although 
grandmother's entire schedule may not be applicable today, it does 
not mean that system in the home is no longer necessary. New 
conditions demand a reorganization of household operation; in 
other words, a new system. 

Present-Day Conditions. — Bake-day has never existed for the 
apartment-dweller and it has practically vanished for the city 
housekeeper. The bakery and delicatessen have greatly reduced 
the amount of cooking in the city home, and cooked foods are 
fortunately reaching the farm home and relieving its overtasked 
women. 

If a maid is not employed, washday is any day the washer- 
woman can be secured ; and where she is employed she usually com- 
bines washday with ironing day. 

Vacuum cleaners, where introduced, have largely done away 
with the necessity for a special cleaning day. The lack of storage 
facilities precludes the possibility of extensive canning and pre- 
serving operations on the part of the flat-dweller; but the woman 
who lives in a house with a cellar and the woman on the farm still 
put up fruit and vegetables with true economy. 

Conventions and social customs now obtain, especially in cities, 
of which our mothers knew little, and our grandmothers less. To- 
day many married women are wage-earners, though where there 



264 THE BUSINESS OF THE HOUSEHOLD 

are little children it is hard necessity that forces them out of the 
home away from their first responsibility, the care of the child. The 
mid-day meal for most city dwellers is no longer dinner, and the 
term "supper" has almost passed from our vocabulary. Social and 
civic duties claim more of a woman's time than ever before. The 
life of the home is in a state of flux, and these changes in the life 
of the people have upset traditions, destroyed customs and broken 
many restraints, leaving the work of the household more hit-or-miss 
than it ever has been before. How a new system can be crystallized 
is a study that may be well called "household management." 

Hard and fast rules cannot be given, but suggestions may 
be offered that will help solve the problem of system in the modern 
home, for it is absolutely necessary to conserve further the time and 
energy of the household manager as well as the finances of the 
home. 

It must be kept in mind that the main purpose of any system 
is to reduce the amount of energy and money expended and lessen 
the time spent in the performance of definite operations. 

System in Arrangement. — In the logical discussion of this 
subject, perhaps the first step to consider would be the arrange- 
ment of the house or apartment. This, however, is a matter that 
is not entirely susceptible to change. In the interior arrangement 
of the home the builder has many opportunities to reduce the work 
of the household manager. Only a few of these conveniences in 
planning can be mentioned as typical of detailed consideration to be 
given every part of the house. 

1. A properly arranged kitchen and accessories as already dis- 
cussed (p. 248). 

2. Plenty of closet and shelf space throughout the house or 
apartment, and each storage element should be adjusted to its pur- 
pose, as linen, bedding, dishes, food and clothing storage, etc. 

3. Laundry-room should be laid out to save steps; permanent 
fixtures installed in convenient location, as washer, wringer, 
machine ironer ; laundry chute from second story to the laundry- 
room if it is made sanitary. 

4. Plenty of light should be provided, especially in the kitchen 
and laundry. 

5. A rear stairway in a house is a convenience. 

6. A toilet separate from the bathroom. 

7. Closets for cleaning implements on each floor. 



SYSTEM IN THE HOME 265 

8. Built-in furniture. 

9. A lift from basement ten kitchen ; perhaps to the upper floors. 
Many old houses may easily be changed so as to reduce the 

work a considerable amount, and even in the apartment, the kitchen 
and dining-room furniture, and the storage, may be arranged with 
an idea of saving steps. 

System in Daily Routine. — The work of the house should be 
done on schedule. There should be fixed hours for arising and 
retiring and for the serving of meals. The work of the week should 
be planned and certain days should be set aside for definite tasks, 
duties and pleasures. Occasional processes like window washing, 
silver polishing, etc., should have their stated places. 

Some have found it helpful to maintain a Weekly or Monthly 
Plan Book, as follows: Use a large blank book, bound or loose 
leaf. Keep a page for each day. On this page enter the work 
planned for each day of the coming week other than the regular 
routine. Social and business engagements, prospective shopping 
tours and other proposed activities should be entered on the page 
and this schedule should be developed at least a week in advance, 
though new items will be entered in it constantly, of course. 

The routine schedule for the week, fairly constant throughout 
the year, should be made out and pasted on the inside front cover 
of the book, or written upon the first page. The plan book should 
be followed closely to get the greatest benefit. A similar plan is 
carried out by some who use a dated diary book for advance 
memoranda of daily plans. 

Servants' and Children's Schedules. — Definite rules for the 
guidance of servants should be reduced to writing and placed in their 
hands in typewritten form. Necessary changes from day to day 
may be noted in writing or given orally, according to conditions. 
Printed books of instructions are now available. Full instructions 
to be followed in emergencies or in the absence of the mistress should 
be stated. All that is expected of a servant should be stated clearly 
and concisely. This would be especially desirable in hiring new 
help. Most disputes might be avoided by having a clear under- 
standing to start with as to just what would be expected of maids 
and other help. 

Children also should have their schedules, and a copy should 
be hung in their rooms. Hours for arising and retiring ; for meals ; 
for leaving the house for school and for returning; hours for 



266 THE BUSINESS OF THE HOUSEHOLD 

study and for play and tasks to be performed should be entered on 
such a schedule. 

Score cards for many persons have proved a help in training in 
systematic habits. Good suggestions for these are given by E. E. 
Purinton in his "Efficient Living" (pages 120, 200 and 216). 

System in Buying. — Aside from studying markets and market 
conditions a definite system for buying should be inaugurated. 
Daily ordering of groceries should be avoided. Calling up the 
grocer or butcher several times a day is wasteful of time, both for 
the housewife and the dealer. 

The last of each month make a rough inventory of kitchen 
material on hand, including food supplies. Make out an order for 
enough staples, canned and package goods to last for an entire 
month. Canned and package goods should be purchased by the 
dozen or by the case 1 — usually a special price can be secured in this 
way — and investigation as to the best place to give the monthly order 
will be worth while. 

The last of each week the menu for the following week should 
be made out, and one order put in at the local grocery for any 
supplies needed to supplement the monthly supply. This weekly 
order should include such perishable stuffs as butter, eggs and 
cheese for immediate delivery. Then write out on a separate sheet 
of paper, one for each day, a list of perishable food material neces- 
sary for the weekly menu, to be delivered on the days stated. All 
the ordering of the family in this way may be cared for once a 
week, except in emergencies. The groceryman will have your 
written order and instructions for daily deliveries as needed, each 
on a separate sheet of paper, while the staples have been ordered 
in quantities for an entire month's supplies, and most of the week's 
perishables have been provided for in the weekly order, or for daily 
deliveries in advance. 

Weekly and Monthly Menus. — As weekly menus are made 
they should be recorded. There are blank menu books on the 
market, each one providing for thirty-one days. Opposite the 
appropriate side headings may be written the corresponding dish 
to be prepared, or, if preferred, menu plans may be made part of 
one's card catalog records. Card catalog menu records are also 
often used. 

Menu-making in advance is almost a necessity if a maid or cook 
is maintained, and if not it is equally as important. It lessens work, 



SYSTEM IN THE HOME 267 

and saves the need of thinking each day what to have for the next 
meal. By planning ahead more economical purchasing is made 
possible. A trial at menu-making will convince one of its value. 
The problem of menu-making has been simplified by recent bulletins 
of the United States Department of Agriculture on " How to 
Select Food." 

Buy Clothing Systematically. — In the purchase of clothing 
a similar system should be established. Two to four times a year 
the family wardrobe should be gone over, mended and put in order 
and an inventory taken. If the budget system has been established 
there should be money on hand for the necessary clothing at such 
periods. Socks and stockings, handkerchiefs, towels and napkins 
and similar articles should be purchased in dozen or half-dozen lots. 
Not only is a saving possible by this method, but the supply is always 
taken care of and the labor of replenishing lessened. Shoes should 
be inspected and, if necessary, sent to the cobbler. Garments 
susceptible of cleaning and renovating should be sent to the cleaners, 
and in this way the entire family wardrobe and household textiles 
should be mended, cleaned, renovated and renewed at definite 
intervals. 

System in Household Accounting. — A budget system should 
be used in apportioning the family income. Every household man- 
ager should maintain a Family Ledger, as explained elsewhere, 
keeping a separate account with each item of household expendi- 
ture, such as clothing, food supply, etc. Such a ledger should show 
the amount and the date of payment of all bills. It should allow 
for a comparison of the grocery bill for each month, and of all 
bills periodically. Household bills should be paid by check once 
a month. Cash should not be used any more than necessary. 

System in Saving. — If one intends to save, as everyone should, 
a definite system should be adopted. A certain amount should be 
laid aside at definite intervals; hit-or-miss saving will never pro- 
vide a competence, or an old-age fund. 

System in Physical Efficiency.— Once every three to six 
months every member of the family should undergo an examina- 
tion by a competent dentist. Every tooth should be examined and, 
if necessary, cleaned and properly cared for. Adult members of 
the family should subject themselves to a thorough physical ex- 
amination by a skilled physician at least once a year. Nothing 
should be neglected to make such an examination thorough. The 
best safeguard against disease is prevention. 



268 THE BUSINESS OF THE HOUSEHOLD 

Physical exercise of some kind should be indulged in by every 
member of the f amily, and this independently of the usual amount 
of walking or out-of-door exercise required by the work or play 
of the day. The securing of such exercises and examinations will 
depend largely upon the fact that they are performed at stated 
and regular intervals. Definite days for such examinations should 
be fixed and entered upon the family calendar and definite hours 
should be assigned for physical exercise. 

Many men assign a certain day each month for the cutting of 
their hair, and so likewise if the women members of the family 
visit the hair-dresser or manicurist such work should be performed 
at definite intervals on assignments in advance. 

There is no danger of reducing life to a mlachine-like grind by 
system of this kind. Eegular habits make for health as well as 
happiness and they conserve one's time and energy for other things 
more worth while. 

Business Forms, Time-Savers and Office Devices. — The 
proper financial administration of the household, so far as con- 
venience and efficiency are concerned, turns in considerable part 
upon the use of appropriate business forms, time-savers and office 
devices and supplies in the home — arrangements which are the 
commonplaces of business practice in most stores and offices. 

Office Equipment in the Home.— The average housewife has 
not realized the need of suitable office equipment. Pen, ink and 
pencil are hard to find, and if found they are generally almost 
unusable. If a parcel-post package is to be prepared for the mail, 
paper and twine are seldom in evidence. If bills of tradesmen are 
kept, dozens of them must be pulled from some hook and gone over 
before the right one is found. If a mail order is to be put in, 
postals seldom are on hand and the only writing material to be 
found is of the conventional social correspondence kind. The 
average housewife seldom keeps an inventory of her larder, and it 
is only when the last can of some material has been taken from the 
shelf that the necessity for replenishing that material is discov- 
ered. She takes the weight stated by the grocer, the butcher or the 
peddler and seldom troubles to verify it. Verification would indeed 
be impossible in the average home, as scales are seldom part of its 
equipment. 

The business man is more likely to be careless about the insur- 
ance of his house and furniture than of his businesss property, 



SYSTEM IN THE HOME 269 

and when the household property is insured, he often does not keep 
records of the time of the expiration of policies, or of such other 
matters as money due on household obligations, all of which is a 
matter of course in his regular business outside of the home. 

For both the man and the woman in the home there is there- 
fore need of emphasis upon business forms and methods, and since 
housekeeping is woman's special responsibility we must demand 
that she make proper provision in these respects and that she in- 
terest her husband and get his cooperation in such matters. The 
particular needs of each home should determine the methods 
employed. 

A Business Desk for the Home. — Every household, manager 
should maintain a business desk, and nothing should be kept in 
or on this desk except that which applies to the business of the 
home. It should be equipped with a good calendar; black and 
red ink ; pens, pencils, scratch-pads, blotters,- druggist's twine, paste 
or mucilage, and glue; a foot ruler, a tape measure and a yard- 
stick. Also, parcel post tables and postal rates; a postal scale; 
scissors; postal cards; stationery and envelopes; stamps; a check- 
book, and, finally upon the top of the desk, or near, should be 
found the card catalog, cook-books, account-books, dealer's cata- 
log and price lists, and other reference works pertaining to the 
work of the home, including "first-aid" instructions. Such a work- 
desk will be found of inestimable value to the efficient housekeeper. 

Any household manager will find much clerical work to be done 
about the house, and it cannot be done without system. Parcels 
must be sent by mail ; orders written out and mailed ; measures must 
be made before orders can be placed, and all such taste demand 
pencil, pen, scissors, rulers or tape measures, paste and various other 
articles which are generally missing when wanted. If accounts are 
to be kept, bills paid, checks drawn and other clerical work per- 
formed, as is the case in every well-regulated family, it is simply 
absurd to provide no one place where such labor may be performed 
and no tools with which to work. A household manager's desk 
should be considered indispensable, and it will not be long before 
furniture manufacturers will fill this need as they have filled the 
need for kitchen cabinets. Let each manager place her desk where 
it will best serve her need. For one, this will be in the kitchen 
where she may watch the cake as it browns; for another, it should 
be in some other room that she may get away from the kitchen 



270 THE BUSINESS OF THE HOUSEHOLD 

atmosphere. Whatever it is — simple table with boxes, or a complex 
desk — let it be in a light place, of right height and furnished with 
a comfortable chair. 

A Typewriter in the Home. — Second-hand and rebuilt type- 
writers of standard make and in usable condition can be purchased 
in the larger cities for from fifteen to forty dollars. A typewriter 
once used in the home will not be given up. Its uses will be found 
almost innumerable. Teaching children to use the typewriter in 
the home may be considered an educational asset. In using the 
typewriter carbon or duplicating paper will be found useful in mak- 
ing out orders, inventories and records. 

Document Boxes. — Every home should have a fair-sized, sub- 
stantial document box. Valuable papers should be kept in a safe 




Fig. 31. — Simple method for filing bills 

or in a safety deposit box in the local bank, but until they are 
placed there some safe, temporary storage place should be provided. 
Aside from legal papers, there are often important letters and 
business documents one must refer to from time to time so that 
a heavy document box in the home is almost a necessity. What 
small amount of cash is kept on hand may be stored, with a reserve 
supply of stamps and other valuables, in such a box. 

Modern apartments often contain safes built into the walls, and 
they can be put into an old building as well. A picture hung over 
the safe-door hides such a safe from view. These safes are sup- 
posed to be fire-proof. Small fire-proof safes are also on the market, 
and their weight makes them proof against the average sneak thief. 



SYSTEM IN THE HOME 271 

Filing Bills. — Perhaps the most simple method of keeping paid 
bills will be found to be the expansible pockets, alphabetically 
labeled, shown in Fig. 31. Bills are filed in this case according to 
the name of the party issuing the bill. If desired, one of these 
cases may be kept for paid bills and another for unpaid bills. When 
bills are paid once a month it is quite essential to have some one 
place in which to keep them until paid. Such cases may be put 
to varying uses. A case may be used for nothing but receipts ; an- 
other for letters, although a larger and slightly different shape is 
generally used for letters. (Fig. 32.) 

If there are few bills, one or more large manila envelopes may 
be conveniently used. Such envelopes are useful for filing many 
memoranda. 

Another method, but not quite so convenient, is to take a large 




Pig. 32. — Letter file 

bill-book and paste the receipted bills in the same. In such a case, 
bills of the same character would be entered on the same page. For . 
instance, all the gas bills would be on one page; the electric light 
bills on another, etc. Only the top of the bills should be pasted, 
so that the next bill pasted in the same manner may be slipped 
under the first bill, leaving only the lower part of the second bill 
exposed, thus saving space. In this way, with one bill overlapping 
another, several may be entered upon a page. The filing case, or 
envelope system, however, is preferable. 

The Use of Gummed Labels and Letters.— Gummed labels 
for placing on cans of fruits and vegetables have long been on the 
market. Similar labels may be had for drugs and medicines. 
Separate gummed letters of all sizes also are obtainable, so that 
one may make one's own labels. Blank gummed labels provide a 
space for writing in names and subjects. Boxes that are tied up 



272 THE BUSINESS OF THE HOUSEHOLD 

for the season should be labeled so as to indicate their contents. 
Closed boxes and tins in the pantry containing but one substance 
should each be labeled. Blit, of course, one should not go to ex- 
tremes with this or any other device or plan. Dresser and bureau 
drawers should neither be labeled nor tagged, as some have advised. 
Abuse of a system brings it into discredit and prevents many from 
trying it. Almost any mother could go to the bureau or dresser- 
drawers, open them, and in the dark put her hand on any of the 
children's clothes she desired to find, and the use of labels or tags 
for such purposes is unnecessary. 

The Use of Forms and Note Books. — No one need wait until 
a printed form is found to answer one's purpose before starting a 
system of records. Loose leaf or blank books, such as high school 
students use in their studies, answer admirably for many household 
records. 

Columns may be ruled in such books to meet one's special pur- 
poses. It is usually better to have several separate books of this kind 
for different purposes than to use one book for all purposes. Indi- 
cations of the use of such records are given as follows : 

Bills Payable. — Every family should have a record of debts 
and similar obligations. A business man keeps his record as "Bills 
Payable," which consists of the date and amount of his notes, when 
due, interest and to whom payable. He also has a record of all 
bills contracted, so that he knows at a glance the first of any month 
just how much he owes. A similar record should be kept by the 
family, but such a record is not intended to cover the current 
household bills. 

Such a record should show the date of any note or other obliga- 
tion contracted, the name of the party to whom the bill or note is 
payable, the amount of interest to be paid, if any; the amount of 
the obligation, and the date of maturity. A column should be 
provided for the amount allowed monthly from the family budget 
to extinguish the debt or debts, and another column to show the 
date the obligation is paid in full, with interest, if any. 

Every family at some time contracts bills that cannot be paid 
perhaps for several months. Money sometimes is borrowed from 
the bank. Instalments may be coming due on musical instruments, 
automobiles, or real estate. In order to pay such indebtedness it 
is just as essential to make a budget of bills payable as it is to 
make a general budget for all of the family expenditures. From 



SYSTEM IN THE HOME 273 

one to several hundred or several thousand dollars may be due dur- 
ing the year. A certain amount should be set aside from the family 
income every month toward a sinking fund to discharge such obliga- 
tions. The total amount will thus be distributed over a series of 
months that each month may bear its share of the obligation. 

Budget for Indebtedness. — Suppose a family is confronted 
with the following conditions : 

(Indebtedness, Jan. 1, Due During Coming Year.) 
Interest on mortgage, $15.00 due July 1st, 1920, and $15.00 

Jan. 1st, 1921 $ 30.00 

Payment on piano, $5.00 per month, for year, total 60.00 

Note due at bank, April 1st 100.00 

Interest on same to maturity 1.50 

Due Smith & Co., work on house, open account 150.00 

Taxes must be paid not later than August 36.00 

Water tax, $9.25 due May 1st, and $9.25 due Nov. 1st 18.50 

Total $396.00 

If $50 of note is renewed, interest at 6 per cent, for 3 mo. 

would be 75 

Total $396.75 

From the above we see that $396 must be paid within a year, 
in addition to other expenses. This would mean that $33 per month 
must be laid aside to discharge this indebtedness of $396 within 
the year, but $33 per month would not pay all of these items 
exactly when they fall due. How, then, are we going to budget 
these various debt items per month ? Some of these items must be 
paid when due. The only two items that may not necessarily have 
to be paid when due are the open account of $150 and the note at 
the bank. In this case one should arrange with the bank to renew 
part of the $100 note, when due, for another three months. The 
Apportionment for Payment of Above 





>> 

u 

PI 


>> 

u 
u 

fa 


o 
i-t 

03 


a 
< 






O 


Interest 


$2.50 
5.00 

17.16 

.55 

6.00 

1.85 


$2.50 
5.00 

17.16 

.55 

6.00 

1.85 


$2.50 
5.00 

17.18 

.53 

6.00 

1.85 


$2.50 
5.00 

16.91 

.80 

6.00 

1.85 


$2.50 
5.00 

16.91 

.80 

6.00 

*1.85 


$2.50 

5.00 

*16.93 

.78 

*6.00 

1.85 


$15.00 


Piano 


30.00 


Bank 


102.25 


Smith 


4.01 


Taxes 


36.00 


Water 


11.10 






Total 


$33.06 


$33.06 


$33.06 


$33.06 


$33.06 


$33.06 


$198.36 



*Debt extinguished with this payment. 
18 



274 



THE BUSINESS OF THE HOUSEHOLD 







00 

p 
bo 

< 


CD 

S 

© 

ft 

a) 


0) 

O 

O 


a 

> 

o 


s 


r <3 

O 


Interest 


$2.50 
5.00 

24.08 


$2.50 
5.00 

'24.08 

"i.48 


$2.50 
5.00 

24.08 

"l.48 


$2.50 
5.00 

24.08 

"i.48 


$2.50 
5.00 

24.08 

*L48 


*$2.50 
*5.00 

*25.59 


$30.00 


Piano 


60.00 


Bank 

Smith 


102.25 
150.00 


Taxes 


36.00 


Water 


i.48 


18.50 






Total 


$33.06 


$33.06 


$33.06 


$33.06 


$33.06 


$33.09 


$396.75 







items may then be budgeted as shown, remembering, however, that 
if $50 is paid off on the original $100 loan, and $50 renewed for 
another three months, the interest on the $50 for three months will 
be 75 cents, making $396.75 for the year. 

From the above it will be seen that Smith & Co. have been paid 
no interest on their open account, and that the payments on their 
bill have been delayed in favor of other creditors. It is also as- 
sumed that the family income will not permit of more than the 
above amounts allowed monthly for the liquidation of all indebted- 
ness as shown. 

If Smith & Co. insisted upon earlier payment the only recourse 
would be to borrow more money during one or more of the months 
prior to July 1st, renewing the notes at the bank from time to time. 

A blank form may be Tuled for Bills Payable as follows : 

Form 1 Bills Payable 



Item 


Date 
Contracted 


When due 


Amount due 


Interest 


Total 











































































Total due during the year 



SYSTEM IN THE HOME 



275 



The following form may be used : 

Amounts Due per Month 
Form 2 (As given above) 



January. . 

February. 

March . . . 

Total . . 



$ 


April 


$ 


July 


$ 


October . . 




May 




August . . . 




November 




June 




September 




December 


$ 


Total.._ 


$ 


Total . . . 


$ 


Total . . . 



$ 



A form for apportioning the payments to be made upon in- 
debtedness may be used as follows : 

Form 3 Apportionment for Monthly Payments 



Items 


>> 

o3 

a 

o3 


>> 

i-> 
o3 

■8 


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o3 


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o3 


© 

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1-3 




02 

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<1 


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0) 


(-4 

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o 

O 


© 

s 

© 
> 

o 


© 

S 

© 
© 


1 










































































































































































Totals. . . . 





























Bills Receivable. — Some families have accounts due them, 
instead of owing others. These accounts may be "open accounts," 
those not secured by notes or mortgages ; they may be in the form 
of notes; interest due; principal on investments due; rents, and 
wages or salary. In other ^ords, they represent the investments 
and the income of the family. 

All these items should be listed and a small note book may 
be used the same as for "Bills Payable." Practically the same form 
used for Bills Payable will answer the purpose, as shown by Form 
No. 1. The heading "Date Purchased," or "Date Loaned," may be 
substituted for "Date Contracted," although this heading will 
answer very well. 

If rents are being paid it is not sufficient to know that they 



276 THE BUSINESS OF THE HOUSEHOLD 

have been paid, but one should keep a record of the date they were 
paid, as such evidence may be important in some unforeseen 
contingency. 

Euled pages for "Bills Eeceivable/' and also "Bills Payable/' 
may be had in the larger stationery stores, as well as ruled books 
made especially for this purpose. It takes only a few minutes at 
any one time to make such entries, and a few hours a month should 
be sufficient to keep every form of record used in the family. The 
household ledger and accounting forms have been discussed in 
Chapter VI. 

Household Inventory. — Mention has also been made of the 
value of keeping a household inventory. Such an inventory may 
be kept in several ways. A blank book may be used, and all house- 
hold articles listed therein in any order that may be convenient. 
Such a record should show, if possible, the following facts : 

1. Date purchased. 8. Amount of insurance carried on 

2. Date of inventory. any particular article, such as a 

3. Art and bric-a-brac. piano. 

4. Description (if desired). 9. Total insurance carried. 
5.. From whom purchased. 10. Date of expiration. 

6. Amount paid. 11. Premium paid. 

7. Estimated value at date of 12. Date paid, 
inventory. 

One article will seldom be insured to the exclusion of other 
articles. 

It may be best to classify household furniture and possessions, 
grouping articles of a similar nature on one page. The following 
grouping is suggestive : 



1. 


Books. 


15, 


Clothing (under name of indi- 


2. 


Pictures. 




vidual ) . 


3. 


Art and bric-a-brac. 


16. 


Kitchen and dining-room ware. 


4. 


Rugs and carpets. 


17. 


Furniture. 


5. 


Curtains and sofa pillows. 




(a) Living-room or parlor. 


6. 


Cut-glass. 




( b ) Reception hall. 


7. 


Valuable china. 




(c) Music-room. 


8. 


Silverware. 




(d) Library. 


9. 


Jewelry. 




(e) Dining-room. 


10. 


Musical instruments. 




(/) Kitchen. 


11. 


Music rolls. 




(g) Miscellaneous rooms. 


12. 


Phonograph records. 




(h) Bedrooms. 


13. 


Table linens. 




Bedroom No. 1, No. 2, 


14. 


Bedroom and bath linens, etc. 




No. 3. 



The above are mere suggestions. If such a classification is used 
a page may be given to each group, or to each room, if desired, 
leaving blank space, or pages^ for entry of items purchased later. 



SYSTEM IN THE HOME 277 

An inventory form may be used as follows: 
Household Inventory 
Form 4 (General Classification) 



Item 


Description 


Date 
purchased 


From whom 


Cost 


< Date of 
inventory 


Present 
value 


















































































Totals... 

















On a separate page might be entered facts pertaining to the 
insurance, such as the following: 

Name of company Amount of policy $ 

Name of agent Policy covers 

Expiration of policy 

Premium paid 



Taking Stock Once a Year. — Every family should take stock 
once a year of its assets, as well as of its liabilities, and a program 
and budget made for the coming year based upon such a process 
may then be made intelligently. Such a listing of property owned 
and debts owed made January 1st each year to show the net worth 
(property minus debts) will be a valuable annual test of financial 
progress, and with the Federal Income Tax now becomes a necessity. 

The inventory should be gone over carefully and losses and 
depreciation marked off. Insurance policies should be checked up 
and provisions made for any renewals. Clothing should be looked 
over with a view to the coming year's needs, and stock of groceries, 
if of any considerable amount, should be inventoried Such a check- 
ing-up would probably pay at least twice a year, and, with regard 
to certain goods, as foods and clothing, once each season, that is, 
four times a year. 

Present and Prospective Needs of Repairs. — It is well to 



19 



278 



THE BUSINESS OF THE HOUSEHOLD 



keep a blank book in which may be jotted down from time to time 
the important necessities required in the way of property repairs. 
The record need be kept only by one owning one's own home or 
other property, although for a tenant such a record, modified to 
suit, serves as a reminder and may well be shown to the landlord. 
These needs might be classified as follows : 

(a) Repairs and changes that must be made at once. 

( b ) Repairs and changes that must be made in the near future. 

(c) Repairs and changes that must be made as soon as finances- permit. 

The house and grounds and barns or garage, if any, should be 
gone over at frequent intervals and the following inspection made : 
Exterior. — 



1. Repainting needed? 

2. Roofs need repairs? 

3. Gutters need repairs? 

4. Doors, windows and blinds? 

5. Gates and fences? 



6. Walks? 

7. Lawns? 

8. Gardens? 

9. Removing trees or shrubs? 
10. Insurance? 



Interior. — Each room should be gone over thoroughly, includ- 
ing halls, and the following inspection made : 



1. 


Painting or calcimining? 


7. 


Plumbing? 


2. 


Papering ? 


8. 


Floors and stairs? 


3. 


Doors, windows, and blinds? 


9. 


Furniture ? 


4. 


Closets? 


10. 


Rugs and carpets? 


5. 


Stoves and furnace? 


11. 


Kitchen utensils? 


6. 


Lighting fixtures and lamps? 


12. 


Insurance ? 



By keeping the house and its contents in good repair large ex- 
penditures at any one time may be obviated, and if such an inspec- 
tion is made throughout the year and repairs made a few at a 
time there will not be so large an expenditure awaiting the end of 
the year. Such an inspection should be made the last of the year 
in any event. 

A Policy Record. — Instead of keeping a record of insurance 
policies on household furniture and possessions in the inven- 
tory it may be better to keep all records of policies in one 
book. The record should show the following classifications on 
different pages: 



1. Life insurance. 

2. Health insurance. 

3. Accident insurance. 



4. Building insurance. 

5. Personal property insurance. 



SYSTEM IN THE HOME 



279 



Each page should show the following facts : 

1. Name of company. 

2. Number of policy. 

3. Date of policy. 8 

4. Expiration of policy. 9 

5. Term of policy. 10 

A form for such a record follows : 



6. Nature of policy. 

7. Amount of policy. 

8. Amount of premium. 

9. Date when premium is due. 
Date of payment first premium. 



Form 5 






Policy Record 
(Classification) 








Name 
Company 


No. 

Policy 


Date 


Expira- 
tion 


Amount 


Premium 


Date Due 


1st Pre. 
Paid 


Miscel- 
laneous 














































































































Totals 



















Miscellaneous Records. — If the Household Ledger, previously 
mentioned, is properly kept it will give a record of the miscellaneous 
information so frequently desired, such as a record of taxes, rents 
and other bills paid. The special forms mentioned in this chapter 
are not intended to be records of expenditures, but memoranda per- 
taining to the details of such things as debts, notes, inventories, 
policies and similar items. 

Card Records. — The use® of the card record system are so 
varied and numerous that it would perhaps pay any housekeeper 
to investigate the different printed forms already published. 

Eecipe card records are on the market, both printed and blank. 
Addresses may be kept on cards. Appointments may be so kept 
and classified according to date. The use of this system is so varied 
that a full description of all the uses to which it may be put could 
not be given in a work of this character. One should visit a sta- 
tionery store, as well as one keeping card systems, and examine the 
various devices, appliances and forms and see if they cannot be 
adapted in some way to reduce the labor of the home. With this 
thought in mind, a visit to a business office to which one has access 
may prove profitable. 



280 



THE BUSINESS OF THE HOUSEHOLD 



A household accounting system also may be kept on cards 4x6 
inches. Each card may record one item of household expense, the 
same as described in the chapter on the Household Ledger. 

White paper slips may be cut from waste writing paper or taken 
from paper tabs, obtainable in any stationery store, and these slips 
may be used in place of the regular cards for card record systems. 
Such slips will be much less expensive than regular cards. They 
may be dropped into the shopping bag as lists, the cost added as 
known, and filed away on return as- the record of expenses. 

A card case similar to the one shown in Fig. 33 may be pur- 
chased for from 80 cents to $2.40. 3- by 5-inch cards will serve all 
ordinary purposes. Trays and boxes are made in sizes to fit the 
cards. Cards cost from 75 cents per thousand, according to thick- 
ness or weight. 




Fig. 33. — Card tray 



In the keeping of all records it should be kept in mind that as 
much data as possible should be entered with every expense item 
in the Family Ledger. All other forms and devices are merely 
supplementary so far as expense records are concerned. There- 
fore these records must not duplicate, nor be confused with the more 
important Family Ledger. 

Cards may be purchased in different colors and a different color 
used for each distinct purpose. Guide cards, each one showing a 
letter of the alphabet, as indicated by Fig. 34, are used to separate 
the cards into an alphabetical division. In the place of alpha- 
betical guide cards, numerical cards may be secured. 



SYSTEM IN THE HOME 



281 



In one box several different kinds of records may be kept, and 
a tab card with an appropriate heading be used to introduce each 
different section of cards. Blank tab cards are available on which 
the user enters the heading desired. 

Address and Telephone Record.— One often needs to keep 
names and addresses and telephone addresses, not merely of friends 
and acquaintances, but of business firms and of places at which 




Fig. 34. — Alphabetical guide cards 

certain repairs may be made. If only one box is being used, secure 
about fifty white cards and one set of colored alphabetical guide 
cards. This record may be kept according to the name of the 
individual or firm whose name it is desired to keep, and also accord- 
ing to subjects. As an illustration, suppose it is desired to remem- 
ber the name and address of a man who fixes umbrellas. The 
card could be made out as follows : 



"UMBRELLAS" 








SMITH, 


JOHN 






2126 Division Street 








Phone, 


Division 


2126 



In this case the card would be filed under the letter "U." It 
may also be cross-referenced by entering another card in the box 
with the heading "John Smith" at the top. 

Appointment Record. — All kinds of dated appointments may 
be entered on cards and filed in this division, also prospective tasks 
and duties. For instance, if it is desired to purchase certain articles 
at fixed dates of the month a card may be made out showing the 



282 



THE BUSINESS OF THE HOUSEHOLD 



articles needed. A different colored card is used, and in place of 
alphabetical guide cards we now use numerical guide cards, and 
the cards are filed under the date the appointments or purchases 
are to be made. One can always look a few days ahead in the 
record and see in advance what is coming up for attention. 

Such a dated record may also be conveniently kept in a diary 
book or page-a-day record. 

A Physical Record. — This is arranged alphabetically, either 
according to individual names of members of the family or accord- 
ing to subjects, such as Physician or Practitioner, Oculist, Dentist, 
Physical Culture, etc. Each card should show just what work has 
been done for a member of the family and when the work was done. 

Recipe and Pantry Record. — A larger colored card may be 




Fig. 35. — A receptacle for stationery 

used for recipes which should be filed alphabetically. Eecipes may 
be as full or as meagre as necessity requires. Pantry and other 
storage records may also be conveniently put upon cards. Cards 
may be used for menus (p. 279). 

Miscellaneous Record. — A miscellaneous record on another 
colored card might be used for filing various kinds of information 
and data, including information that might be of value, or which 
one might wish to look up later, such as the sizes of clothing worn 
by different members of the family. 

Follow-up or Reminder Tabs. — Small follow-up tabs may 
be purchased in different colors; these tabs are so made that they 
may be slipped over the top of a card. They serve as reminders, 
each color being used for a separate purpose; for instance, one 



SYSTEM IN THE HOME 



283 



color could be selected as indicating the first day of the month, 
another to indicate the tenth day and another for another date. 
Used in this way any card bearing a certain colored tab would mean 
that that card demanded attention upon the day indicated. 

Miscellaneous Office Devices for the Home. — The illustra- 
tions on pages 282 and 283 explain their own uses. The stationery 
rack, Fig. 35, furnishes a cheap and a convenient receptacle for 
stationery. The hanging wall rack, Fig. 36, may be used for vari- 
ous purposes, not only in connection with desk work, but in the 
kitchen as a temporary receptacle for circulars, laundry lists, bills 




Fig. 36. — A hanging wall rack 

and similar papers. The Everyday File, Fig. 37, will be found 
convenient for filing references that need immediate attention, 
while the distributing box, Fig. 38, will be found desirable for 
filing addressed envelopes and bills with checks awaiting delivery. 

Every home should have a pencil sharpener. There are numer- 
ous other office devices that may be made to serve a valuable pur- 
pose in the home. 

Conclusion. — "A place for everything and everything in its 
place" is an old saying that sums up the problem of system in the 
home, especially when combined with the phrase, "A time for 
everything." 



284 



THE BUSINESS OF THE HOUSEHOLD 



Ask yourself how you may shorten every operation connected 
with the upkeep of the home; how may the amount of work be 
lessened, and how may expense be reduced, friction avoided and 
leisure time increased. 

The value of all records and systems lies in their simplicity. 




Fig. 37. — Convenient for filing purposes 



Too much system will kill the very purpose for which it was in- 
tended. Often, it may take more work and time to keep a system 
than it does to do the work itself. The forms and the methods 
mentioned in this study of household management are intended 




Pig. 38. — Convenient for filing- addressed envelopes, etc. 



to be suggestive. The theorist and the student of household arts 
have much to learn from the practical housekeeper, while the latter 
undoubtedly may learn from the former. As in all things, a medium 
course should be pursued and suggestions should be adapted to the 
needs of each individual home, and not the home to the system. 



SYSTEM IN THE HOME 285 

QUESTIONS 

1. What is meant by "system"? What should be the prime purpose of 

system in the home? 

2. How may system be followed in buying? In planning meals? 

3. Why is system necessary in saving? 

4. Is there any advantage in purchasing in quantities ? 

5.. What are the advantages of keeping receipted bills? 

6. How would you file household bills? 

7. Define the terms "Bills Payable'' and "Bills Receivable." 

8. Why should one make a budget of his indebtedness? 

9. How would you keep valuable papers ? 

10. What is a household plan book? 

11. How did our grandmothers apportion the work of the week? 

12. What present-day conditions have been brought about by labor-saving 

devices in the home? 

13. What is the advantage of making weekly or monthly menus in advance? 

14. What is a household inventory and what is the value of such an in- 

ventory ? 

15. How would you classify household goods in an inventory? 

16. What is meant by a "card record"? Name the purposes to which a 

card record system might be put in the home. 



PROBLEMS AND DEMONSTRATIONS 

1. What regular days are assigned in your home for the performance of 

certain activities? 

2. Make an outline, sketching any particular system now used in your 

home. 

3. Make a day's schedule for a home, consisting of father, mother, two 

children, eight and twelve years of age, and one servant. 

4. Suggest a schedule covering a week for two children, one boy, six years, 

and one girl, fifteen years of age. 

5. Write out a schedule for a maid, setting forth those duties not in- 

cluded in the ordinary routine of the day. 

6. Make out an order for staple groceries to cover a month's supply 

for a family of five, including two children. 

7. Make out a week's order for other groceries not included in the above 

order, but intended to supplement the same. 

8. Write out a scheme for dispatching the work of the home through the 

use of office devices. 

9. List the names of any forms or records kept in your home. 

10. Make a list of any labor-saving office devices in your home. 

11. Secure a stationer's catalog or one of office devices and list in a note 

book all the devices that might be used in the home. 

12. Draw a blank form that might be used as a page in an inventory book 

13. Make an inventory of your clothes; your books; the furnishings of 

your room. 



286 THE BUSINESS OF THE HOUSEHOLD 

14. Secure an inventory book, or any blank book, and make an inventory of 

household goods in your own home. 

15. Mr. Jonas has $30.00 interest due the first day of January and the first 

day of July. He is making monthly payments of $10.00 a month 
on furniture, which payments must be continued through the 
year. April 1st he has a note of $50.00 due at the bank. He pays 
$30.00 a month rent and his coal bill for the year amounts to 
$150.00. Personal taxes must be paid May 1st amounting to $15.00. 
Water tax May 1st, $9.25 and November 1st, $9.25. He saves $25.00 
a month, and all of his other living expenses amount to $100.00 a 
month. His salary is $3,000 a year. Budget the above so that all 
accounts due may be paid promptly at maturity without interfering 
with the regular monthly household expenditures. 

REFERENCES 

Child, G., The Efficient Kitchen. McBride, Nast & Co. 
Frederick, C, The New Housekeeping. Doubleday, Page & Co, 
Woolson, G. B., Household Inventory. G. B. Woolson. 
Catalogues of the Library Bureau, New York. 
System Magazine. Chicago. 



CHAPTER XXIII 
THE PROBLEM OF SERVICE IN THE HOME 

In the making of family budgets and in the consideration of 
household efficiency the problem of service must not be overlooked. 
If there is one factor in the expenditure of a household that may 
justly be classified among the items that make up the cost of high 
living it is often that of service. This chapter, however, is only 
concerned with the financial aspects of this question. It has per- 
haps been thoroughly discussed from every other angle, although 
such discussion has not resulted in its efficient organization as 
an industry. Since the European War interfered with the tide of 
immigration and opened up many high-paid positions, the shortage 
of girls available for housework makes every phase of the problem 
more acute than ever before. 

From the financial standpoint we need not concern ourselves 
with the servant-girl problem in the families of the well-to-do, al- 
though in the homes of the wealthly it is a vital factor. The spe- 
cialization, however, required of help in such establishments has 
brought about a more special class of trained help than that re- 
quired in the average home, so that their service question becomes 
an entirely different problem from that which confronts the family 
of average means, and at this time it is only the latter class in 
which we are interested. 

The Evolution of the Maid. — There was a time when "serv- 
ant-girl " was a good enough appellation to be used by both mistress 
and employee. In the rural communities she was known as the 
"help" or the "hired girl," but in town the term "servant-girl" was 
a distinction appreciated by both mistress and maid. The family 
that could afford a "servant" certainly represented the aristocracy 
of a community. 

Long before the wave of "high living" set in, both terms began 
to acquire an opprobrium they did not deserve, and so, in time, 
the "hired-girl" developed into a "servant-girl," and finally into a 
"maid," and with the change of appellation came a renewed de- 
mand for her services. Women who never before felt the need of 
her services as ^Tiired-girl" or "servant" suddenly discovered a vital 

287 



288 THE BUSINESS OF THE HOUSEHOLD 

necessity for a "maid." The family who had felt no cause for 
pride in the possession of "help" at once discovered that a "maid" 
contributed a certain prestige never before enjoyed. 

When the "hired-girl" became a "maid" the accolade conferred 
upon her by her mistress in the form of a cap and apron at once 
raised her own social status, and as the mistress thereby gained a 
new prestige the maid also demanded an equivalent in the form 
of increased wages, besides the honorarium of many special privileges 
never before enjoyed. 

How a Maid Raises the Standard of Living. — The number 
of girls eligible at first for graduation from the "servant-girl" 
class into the ranks of the "maids" was, more or less, limited. 
They were able to demand a higher wage than their sisters of less 
pretension, and thus the first step was taken in increasing the 
cost of living. 

The second step was brought about by the special privileges 
secured by the "maid." With her cap and apron she refused to do 
many of the harder tasks formerly included in the duties of gen- 
eral houseworker, the "hired-girl." Such menial work as the family 
washing must now be done by a washerwoman. Soon the care of 
the children began to be too heavy a burden for the maid, and a 
nurse-girl must be secured. In addition to all this, if there were 
too many in the family, or more than a specified number of rooms 
in the house, a second girl must be secured, and if this were neces- 
sary it also proved the necessity for maintaining a cook. She prob- 
ably asked for a "kitchen-girl," and so from the possession of one 
employee have come many demands* and greatly increased expenses 
in the form of service. 

When the maid first doffed her cap and apron many a mistress 
felt the necessity for displaying the costumed girl, and so the noon 
meal became a lunch, and then a luncheon, to which, quite fre- 
quently, guests were invited as to a special occasion; then came 
the afternoon tea, for what was the use of having a maid if she 
could not be placed upon exhibition? All this meant extra work 
and increased work called for more help and a greater expenditure 
for the table. The addition of new social customs generally brings 
with them added expenses and thus one by one they serve to raise 
the standard of living. 

The possession of a maid in the average family may bring about 
one of two extravagant conditions. In many communities the super- 



THE PROBLEM OF SERVICE IN THE HOME 289 

ciliousness of the maid often shames a mistress into setting a much 
better table than the family can afford, that she may not appear 
mean in the eyes of the maid and be reported as "stingy" or "close." 
So, in food, in clothes, in the general operations of the household 
and in many little things, the employer raises her standard of living 
through fear of her maid's tongue. 

The other condition exists more in the smaller towns. There 
Mrs. Smith really cannot afford a maid, but unless she keeps one 
she loses prestige, and she makes it possible by many petty 
economies. As there are so many Mrs. Smiths in such communities 
they do not try to hide such a condition from each other, but even 
when there is not this dishonesty in ideals of life the retention of 
the maid must depend upon many petty economies in other parts 
of the household. 

Of course, in the average homes of the middle-class in the cities 
the maid has lost her novelty and she has become a regular factor 
to be reckoned with. So many families now possess a maid that 
she has lost much of her power to add to the social prestige of her 
mistress, but she has not lost her ability to add to the cost of living. 

The Expense of Maintaining "Resident Service." — In addi- 
tion to the extravagances mentioned in the foregoing paragraphs, 
and in addition to the wages of any resident employee, must be 
added board and room. A business man figures his rent as part 
of the expense of doing business. A maid requires a room and, 
frequently, a special bath-room, all of which means a larger apart- 
ment or house and, therefore, an increase in rent. This room must 
be furnished, heated and lighted, which means expense. At the very 
lowest figure one could hardly rent a room equal to that found in 
the home of a family employing a maid for less than three dollars 
a week. Bachelor's quarters, consisting of one room and a private 
bath, in a large city could not be secured for less than from five to 
seven dollars a week. Figuring it in another way, apartments in 
the cUy rent for fifteen dollars and up a room per month, in- 
cluding one bath. When two baths are offered the charge is a 
little in excess of that figure. At the very lowest possible estimate 
the maids room and bath cannot be figured at less than $15 a 
month. 

The cost of table board in any decent boarding house is not less 
than seven dollars a week. At this rate the maid's board would be 
worth not less than $28 a month. The fact that she has access to 
19 



290 TH E BUSINESS OF THE HOUSEHOLD 

the pantry and that she can and does live far better than she 
could in any good boarding house, and that it cost her mistress 
more than it would to board her out at boarding house rates, is 
not taken into consideration. 

Fifteen dollars per week is the average wages of a maid in the 
cities. It will run as high as eighteen (1922). At fifteen dollars, 
a month of four weeks makes her wages $60. To this add $15 
for room and $28 for board and we have $103 per month. 

Business men figure from ten to twenty per cent, for deprecia- 
tion of their stock and plant. Tools wear out and are broken. 
Goods are often stolen and the loss must be accounted for and 
deducted from the inventory at the end of the year. House- 
wives' experiences have given rise to some pertinent quotations, as 
"A maid eats her wages, wastes her wages and breaks her wages." 
While this may not be universally true, the loss to the family 
through the carelessness of a maid, including wastage, the enter- 
tainment of kitchen friends, the breakage of china and glassware, 
and the excess cost not already figured would not be less than 
ten per cent. Let us see then exactly what such a maid is costing 
the average family (1922) : 

Wages at $15.00 a week, per month $60.00 

Room and bath, per month : 15.00 

Board at $7.00 a week per month 28.00 

Depreciation (waste, breakage, etc.) 10 per cent on above $103 .85 

Total cost per month $103.85 

The total yearly expense would be $103.85 X 12 or $1246.20. 

Many a family having an income of only four thousand dollars 
a year is maintaining the services of a maid, and yet $1246 a 
year is nearly thirty-three per cent, of the entire income. This is 
considerably more than most of the economists allow for rent 
and clothes. 

In the above estimate nothing has been allowed for gifts or bene- 
factions during periods of sickness or misfortune liable to come to 
any maid, and nothing has been allowed for extra food and other 
costs caused by the unconscious shift in the whole scale of ex- 
penditure, due to the fact that "We have a maid now." 

When Should a Maid be Employed. — During the advent of 
children into the family any woman is entitled to the services 
of a maid, even though the family income be limited. Economies 
may be made in other directions, which would be perfectly justified 



THE PROBLEM OF SERVICE IN THE HOME 291 

under such conditions. If the mother is an invalid or during 
periods of extended sickness in the family, a maid may be justified 
regardless of expense and at the risk of entailing indebtedness for 
this temporary help. If a real necessity for help exists, and if 
emergencies require it, almost any sacrifice on the wage-earner's 
part should be made to provide for it. Otherwise, no family having 
an income of less than three thousand dollars a year has any right 
under normal conditions to maintain a maid. 

Any woman has a right to rest and to reasonable recreation, 
but it is only when the physical demands of the household become 
greater than her ability to care for them that a wife and mother 
is entitled to assistance, unless, of course, money is no object. 
This, of course, does not apply to the household where, for legitimate 
reasons, the wife desires to become a wage-earner outside of the 
home. It is the normal problem whose solution we are seeking. 

When a Maid Should Not be Necessary. — If the husband 
can do all of the work of his office why should he engage an assist- 
ant, unless he can utilize his time to better advantage in some one 
phase of his business. It is only when he can do this, or when the 
work increases beyond his personal ability to keep up with it, that 
assistance is demanded by the business man. He is never given an 
assistant simply that he may have more time to read the papers, 
or to seek recreation, or even to cut down his hours of toil. 

The woman of the home has no more economic right to hours 
of leisure or of recreation than has the husband. It is true that 
it is possible for the woman so to arrange her work that she can 
have a half -hour's rest once or twice during the day, and perhaps 
several hours for social activities, opportunities that never come to 
the business man during business hours. On the other hand, the 
responsibilities of her position are not over at the end of the 
eighth or the tenth hour of work. She cannot lock the door on 
them as her husband can on his business demands. In general, how- 
ever, husband and wife should so arrange their work that their 
recreation may be taken together, if it is at all possible. With 
the wife and mother the work of the home comes before church 
or club or social activities, as does the work of men in business, 
and these activities should not be indulged in under ordinary cir- 
cumstances if they entail the necessity for keeping a maid. 

Under a four thousand dollar a year income the average woman 
in normal health, and surrounded by normal family conditions. 



292 THE BUSINESS OF THE HOUSEHOLD 

should be willing and able to do all but the heaviest work of the 
household. If the possession of a maid leaves the woman of the 
household with nothing to do but to read, make calls, receive, at- 
tend bridge parties and matinees, she has no moral right to ac- 
cept assistance in doing the work of the house. If the possession 
of a maid makes it possible for the mother and wife to sew and 
make the dresses that otherwise would have to be purchased, or to 
do other productive work which entails no loss to family life, there 
may be justification for the employment of help. 

When there are no children, or after the children are grown, if 
the income allows, the choice of the wife may decide whether she 
will use her -energies in running the house or in working for the 
public welfare, for which the experienced homemaker is eminently 
fitted. 

Household Slackers. — If the American woman of average 
means would banish from her mind the social status of her neigh- 
bors, if she would cease to care what they may think or say, and 
recognize that housework and home duties are not degrading, the 
problem of living might be greatly simplified for all concerned. 
In the social circle of the family having a three thousand dollar a 
year income a maid should be the exception. As it is, she often 
exists that she may give tone to the family and that she may add 
social prestige. A woman of fair health who cannot take entire 
charge of a family of three children with herself and husband in 
a small house or in a modern apartment with all of its conveniences 
without the aid of maid or servant is not bearing her share of the 
economic problem. She is a shirker and a "slacker." These are 
plain words and few women keeping "help" will agree with them, 
perhaps, but they are true, nevertheless. When she considers herself 
the protegee of her husband and entitled to fine clothes, freedom 
from work and anxiety and the heir to nothing but a good time, 
that is one proposition ; but if she is to be a real wife and helpmate 
and mother, then the work of the home comes first. The husband 
may say he does not want his wife to do "this" or "that" and that 
he wants her to take her proper place in the social life of the com- 
munity ; but if his income is not considerably more than that already 
mentioned he has no right to force his wife to become a parasite 
and he has no right to possess a wife who is not competent to meet 
the only condition he is able to provide and to do justice to himself 
and the future of his family. On the other hand, he must be as 



THE PROBLEM OF SERVICE IN THE HOME 293 

ready to furnish her with the appropriate labor-saving devices as 
he would to furnish them for herself. 

The absurdity of keeping a maid in a fc ur- or five-room apart- 
ment in which the children must be forced to sleep upon couches 
in living rooms, in order to provide a room for the maid, should 
be apparent. In 1916 a certain family occupied a house with 
eight rooms for which they paid sixty-five dollars a month rental. 
They kept a cook, a so-called butler, a nurse-girl and a maid. 
The family consisted of father, mother and two small children. 
Could anything be more inconsistent? 

One thousand dollars a year is the average, if not the mini- 
mum expenditure, required to support the services of one maid in 
a large city. Interest on this sum is sixty dollars a year at six 
per cent. If we add this interest charge, which would be $5.00 
per month, to the total monthly expense of $83.33 for wages and 
costs, the total monthly bill would be $88.33. Can the wage- 
earner afford it? Is the service to the housekeeper worth it? Would 
not anyone be greatly excited over a prospective wage increase of 
sixty-five dollars a month? Could not that sixty-five dollars give 
more abundant life to the family if spent in some other way? 

The sad part of this question of increased living expenses is the 
fact that, in the majority of instances, the maintenance of a maid 
in the average family is unnecessary, absolutely uncalled for and 
a reflection upon the ability and the industry of the so-called 
" Lady of the house." 

Doubtless, many a woman who will read this and who is not 
honest with herself will call this destructive criticism. If so, are 
you willing to admit that you expect to be more of a drone than 
your husband? Do you claim that because of your sex you are 
entitled to more recreation and a greater indulgence in freedom 
from work than the father of your children? If so, and if your 
contention is correct, then our entire economic life has been based 
upon a fallacy, and we should begin all over again and erect a struc- 
ture suitable to the foundation you have planned. 

If the foregoing suggestions have not given a sufficient hint 
as to why any healthy woman under normal conditions should dis- 
pense with the services of a maid, the following additional factors 
should be considered: 

The Relation of Children to the Work of the Home. — It is 
the rightful heritage of children to be taught how to work. It is 

20 



294: THE BUSINESS OF THE HOUSEHOLD 

their right to demand that they be prepared for the making of their 
own homes later in life. We hear much about the necessity of 
the schools preparing young people for real life, but how much 
do we hear about preparing boys and girls in the home to become 
home-makers ? The mother who has not taught her own girls to 
care for themselves and their surroundings, to sew and to cook, has 
robbed her children of that which is far more precious than social 
position, and far more important than anything that can be offered 
by the most fashionable preparatory school. That mother has 
actually robbed her daughter of part of her character training and 
of her economic independence. To that extent she has helped to 
lower the future standard of living of her daughter. 

If there are children in the family and if they have passed the 
age of five or six, then there should be less, rather than more, need 
for the services of a maid. In these days we hear young girls 
rebelling against being a " K. M.," or " kitchen mechanic," when 
asked to wash a few dishes. "Clara Smith doesn't have to do that 
kind of work. The Smiths keep a maid," the mother is told, and 
so, in order to live up to the Smith standard of living, the Joneses 
must also have a maid, or mother must do all the work without 
the aid of daughter's lily-white hands. It makes no difference that 
the Smiths have a ten thousand dollar a year income and the 
Joneses three thousand dollars. 

The very best opportunity for dispensing with outside service 
is that presented by the family with children. The girls simply 
must be taught to sweep and dust, and wash and wipe dishes, and 
to cook and to sew. Boys, too, should be enlisted in as much of the 
work of the house as is possible. Boys should be taught to care for 
their own clothing. They should look after their own linen and 
prepare it for the laundry; black boots as necessary; clean walks, 
and care for the furnace, if such burdens fall upon the family ; to 
make their own beds and care for their own rooms as do the cadets 
at the United States Military Academy, at West Point. They 
should know simple cookery, sewing and the requirements of food 
and sanitation. 

The Family a Co-operative Working Unit. — Every member 
of the family should form definite habits of order — to put back in 
their proper places clothing, books and tools that have been used, 
thus reducing to a minimum the daily task of setting the house to 
rights. 



THE PROBLEM OF SERVICE IN THE HOME 295 

The husband should co-operate, by example, in this character 
training, take a share in planning expenditures and in keeping 
records. He should assume part of the responsibility for the mar- 
keting and when the wife has tasks beyond her strength, and means 
are not available for hiring assistance, he should give some of his 
home time to a share of the housework. 

The family should be run on a co-operative basis and each one, 
boy or girl, should be taught that he or she has a very definite part 
of the work to perform. A strong boy of ten is not going to grow 
up with much respect for the dignity of womanhood when he is 
allowed to spend all his leisure time in play while mother, sister, or 
even the hired maid, is emptying ashes, making fires, mopping floors 
and doing work that he might well be doing. These conditions were 
formerly unknown, and they cannot continue to prevail if we would 
resume the normal family life that hardly exists to-day in the 
cities. The first great step then in reducing expenses and in doing 
without paid service is to enlist the aid of children, if there are 
any, and of all adults in the family. There are to-day many women 
enjoying an income of twenty-five hundred dollars, or more a year, 
who have found a way out and who are doing their own work either 
with the aid of children and husband, or in other ways. 

Arrangement of the House a Factor in Reducing Work. — 
The systematic arrangement of the house, which has already been 
discussed (Chap. XXI), is effective, of course, in directly reducing 
work and the necessity for hired service ; and it will help make it 
possible for the home woman to do her own work, except the heaviest 
and roughest parts. Let all surfaces be reasonably smooth and easily 
cleanable. Have no unnecessary furnishings too heavy to move, 
each taking up space and requiring care. Arrange the furnishings 
and the processes of daily work so that steps and all movements may 
be reduced to the minimum. 

These fundamental rules are being considered more to-day than 
ever before. Materials and colors are chosen that will not unneces- 
sarily show dirt, thus requiring constant cleaning. Prevention is 
receiving, as it should, much of the study that removal has previ- 
ously required. 

Architects are providing vestibules where shoes may be cleaned, 
and overshoes, wet umbrellas and dripping raincoats stored. Built- 
in shelves, bookcases, cupboards, seats and mirrors help to reduce 
the labor and expense of cleaning processes. Eugs have taken the 

20a 



296 THE BUSINESS OF THE HOUSEHOLD 

place of carpets. Coal- and wood-cooking stoves have given way to 
gas and electric apparatus, and steam and hot-water systems have 
replaced dust-creating hot-air furnaces. Screens and cleanness are 
abolishing flies, thereby saving labor and renovation costs. The 
proper design of every part of the house which is involved in the 
work of the home reduces the labor involved in its care. 

Labor-Saving Equipment. — In addition to the arrangement 
of the house, the labor-saving equipment should command serious 
consideration in studying the service problem. The chapters on 
Household Equipment and Electricity should be considered in this 
connection. 

Part-time or Non-resident Help. — If all these things have 
not done away with the necessity for help, then one may resort to 
non-resident or part-time help. A woman can be secured to come 
in once a week to do the family washing and ironing. She will 
also have time to mop up the kitchen and the bath-room. 

Once in two weeks a woman can come in to clean up the entire 
house. The mother or the children can take care of it in the mean- 
time with the vacuum cleaner. 

In many communities girls can be had to come in for one or 
two hours during the day. In such ways, board and room is saved. 
In a few communities girls from high school classes in domestic 
science are occasionally available out of school hours to do this 
part-time work, thus providing a good type of service and helping 
to inculcate in the whole community sane ideas regarding the 
dignity of housework. 

While, with part-time help, room and partial board is saved, 
one must expect to pay higher for a worker who rooms and boards 
herself and for lost time between jobs. 

In some cities, at present, all the work of the house is done 
daily by part-time workers, who are employed on a regular busi- 
ness basis of two or more shifts. 

In New York city one who has tried this method says, "It 
cost me actually four dollars a week more in wages at twenty-five 
cents an hour and reduces my household seryice exactly forty-nine 
per cent." 1 

What Constitutes a Fair Day's Work for the Housewife 
and Maid? — In home life we have the sweated housewife as well 
as the slacker. From daylight until dark, and perhaps long after 
others are at rest, many a housewife toils unceasingly. The same 

1 Housewives' Magazine, May, 1918, p. 14. 



THE PROBLEM OF SERVICE IN THE HOME 297 

is true of the maid. There are no hours of rest in many homes 
for the maid, except the weekly afternoon off. The farmer finds 
it hard to secure and to keep a steady supply of labor, principally 
because of the unusual hours of labor expected of a farm-hand, 
and, for the same reason, perhaps, the housewife may find it harder 
every year to secure competent girls who are willing to work on a 
schedule of unrestricted hours. 

Of course, it is not practical to think of the time-clock in con- 
nection with either house or farm-work, and neither may it be 
possible to say that the work of the day shall start at seven and 
end with the six o' clock whistle, but it is reasonable to establish 
fair limits for a day's work, whether on the farm or in the home. 

An attempt should be made to urge every woman, as well as 
every man, to do his share of the world's work. The parasitic 
woman, as well as the idle, sycophant man, should have no standing 
in any community, but, on the other hand, relief should be found 
for the woman whose work never seems to be done. 

An Eight-hour Day for Home Workers. — The ideal of the 
eight-hour day of real productive work may be feasible for the 
home and the farm, as well as for the store and shop. The problem 
for the home is a different one from that of the commercial world, 
as the home requires work early in the day, and in the evening when 
other! toilers are taking their rest. Because of this, it must be made 
possible to assign definite rest hours during the afternoon. The 
immediate problem is two-fold : to secure a full work-day for those 
women who have too much leisure and are really slackers, and to 
lessen the work of the sweated housewife. 

If the woman of the house does her own work, and she cannot 
accomplish that work within an eight-hour period, this may form 
the basis for a legitimate demand for assistance, if the finances of 
the family justify the expenditure. 

If the work of the home cannot be accomplished by a maid 
within an eight-hour period per day her work should be supple- 
mented by some member of the family. More reasonable hours of 
work must be recognized within the home as one factor in the solu- 
tion of the household service problem. 

Domestic Service a Trade. — Domestic service should be 
recognized as a trade, and there should be nothing to fear from 
the ultimate unionization of that trade. Such service should de- 
mand proper preparation and training on the part of those who 



298 THE BUSINESS OF THE HOUSEHOLD 

enter it; a certain standard of intelligence should be required, and 
the same moral virtues demanded that are requisites in any walk 
of life. The ear-marks of servility must be removed from house- 
work. All this, however, cannot be accomplished unless reason- 
able hours of service are recognized. 

A definite attempt to bring about these conditions should result 
in a trained group of workers. Wages should be graded according 
to skill. The terms "employer and employee" must be substituted 
for "mistress and servant." The duties and schedules of work 
of the household must be standardized, and the legal relation of 
employee and employer must be determined, as it is being determined 
in other lines of work. 

Efficiency Demanded of the Home Maker. — Economists say 
that the present high prices never will recede to their former level. 
Efficiency in business is demanded of every man, and an equal effi- 
ciency should be* demanded of every woman. The European situa- 
tion promises to cut off for many years to come the supply of 
immigrant girls willing to do housework. The independence and 
the aristocracy of mind acquired or inborn in every American 
citizen will more than ever prevent our native girls from accepting 
positions that bear the ear-marks of servility. The earning power 
of the majority of men is becoming more and more limited. There 
are more and greater opportunities for the few and less chances 
for the average man. All this means that even the well-to-do 
will find it difficult to secure help in the work of the house, other 
than that offered by a trained class represented by the serving men 
and women of Great Britain, who boast that they were born in 
service and that they expect to die in service. It means that the 
woman of even more than ordinary means is choosing to do her own 
work, as was formerly the custom, a condition that promises much 
for the future welfare of the home. 

There is no greater leak in the home finances of to-day than 
that through the medium of hired service. The first step in reduc- 
ing the cost of living must come about through banishing false 
pride and false standards. This may result in the discharge of 
every maid in every normal home not enjoying an income of more 
than four thousand dollars a year. How many wives will have 
the courage to take this step before being forced to it? Tradition, 
convention, custom, false pride, Mrs. Grundy, selfishness and lazi- 
ness are a few of the factors that have made service seem necessary 



THE PROBLEM OF SERVICE IN THE HOME 299 

in many homes. Domestic service tends both to living on a more 
extravagant scale, or "high living," as it has been called, and to 
waste and carelessness which still further increases the costs of 
living. 

QUESTIONS AND PROBLEMS 

1. Is a woman any more entitled to assistance in the work of the home 

than is the man in the work of his office, store or factory? 

2. Suppose an American family in average financial circumstances. There 

are two or three children in this family. The wife is in good health. 
The family washing is done by a laundress who cleans the house 
thoroughly every two weeks and does a certain amount of cleaning 
once a week. The mother is able to do all the other work of the 
house, besides a little sewing. By proper management she finds 
time for an occasional afternoon's recreation. She does not, however, 
have the time to give to club work. She cannot keep up with social 
activities, attend frequent matinees or indulge in much leisure for 
reading, walking or riding. Is she justified in keeping a maid? 

3. If the family income were sufficient to meet this added expense with- 

out hardship, if the wife can do the work without its being a tax 
upon her health, should the maid be employed or the cost of her 
services added to the savings account, or some luxury be secured 
for the home? 

4. What are the expenses connected with keeping a maid other than wages ? 

5. For what wages may a competent maid be secured? 

6. Should children be made to do work of the house usually done by the 

mother or by a maid? All of it? What parts of it? 

7. Should boys be taught to do household work? What part? 

8. How may the arrangement of a house help to reduce the labor of the 

home? 

9. In what way may certain devices reduce the amount of work in the 

home ? 
10. How may part-time service reduce the cost of living? 

REFERENCES 

Beecher, E., The Law of a Household. (Privately Published.) 

Frederick, C, New Housekeeping. Doubleday, Page & Co. 

Reports of Commission on Household Employment, National Board, 

Young Women's Christian Association, New York. 
Salmon, L., Domestic Service. The Macmillan Co. 
Wadhams, C R., Simple Directions for the Chambermaid, the Cook, 

the Laundress, etc. Longmans, Green & Co., Boston. 



PART III. 

FACTORS IN THE FAMILY BUDGET— HIGHER 

LIFE 

CHAPTEE XXIV 
LIFE, ACCIDENT, AND HEALTH INSURANCE 

Insurance should be considered as important a factor as any 
other aid in the household budget. It often makes possible the 
education of children, the holding together of the f amily, and the 
retention of the homestead after the main wage-earner has been 
incapacitated or taken by death. 

The business of insurance has grown to enormous proportions, 
and the assets of the insurance companies are so great that their 
misuse might easily disturb the finances of the entire country, as 
well as endanger the interests of millions of policy-holders. At 
one time some abuses existed in connection with insurance, but laws 
were finally passed in various states to safeguard policy-holders so 
that to-day insurance companies are usually under the supervision 
of the state and subject to examination by state officials. Inquiry 
may be made, for example, in the State Insurance Office of your 
state capitol for information regarding any company in which you 
are interested. 

There are several distinct classes of insurance, and it will be 
well to consider each of them. A few terms need to be explained. 

Policies and Premiums. — These terms, as in Fire Insurance 
(p. 187), refer respectively to the contract made between an insur- 
ance company and the insured, and to the amount to be paid at 
certain intervals by the insured in return for the benefits guaran- 
teed to him as the holder of an insurance policy. 

Beneficiary. — A beneficiary is one directly benefited in some 
way by another. In an insurance policy the beneficiary is any one 
to whom payment is to be made by an insurance company in the 
event of loss covered by the policy. The beneficiary in some policies 
may be the person paying for the insurance, as in health insurance ; 
300 



LIFE, ACCIDENT AND HEALTH INSURANCE 301 

it may be some other person, as a man's wife, who is often named 
as beneficiary, for example, in his life insurance policy. 

Accident Insurance. — The name of this type of insurance is 
self-explanatory. In case of accident a stipulated sum is usually 
paid to the injured party, according to the nature of the injury 
sustained. For instance, the loss of one or both eyes, of one or both 
hands or feet, call for specific indemnities. If death results from 
the accident a total sum is paid to the beneficiary or to the heirs. 
In many companies this sum is five thousand dollars. Others base 
their policies upon a one or two thousand dollar death benefit. 

Double Indemnities and Miscellaneous Benefits.— Some acci- 
dent insurance policies provide for paying twice the amount of the 
indemnity if the accident occurs while riding on any public con- 
veyance, such as a railroad, an electric or street car line, a boat or 
an elevator. 

Many companies provide a sum of one hundred dollars to be 
expended, if necessary, in the temporary care of the insured when 
injured, and in conveying the injured party to his home. They 
also provide a certain weekly indemnity to be paid for a specific 
number of weeks during which time the insured may be incapaci- 
tated. In some cases the sum is paid during the time of total 
disability, providing such time does not exceed a certain number of 
weeks. Again, if total disability is removed and the insured is able 
to work part time, partial disability, that is, a reduced payment, is 
allowed for a limited time. 

As an illustration, an accident may confine one to the house for 
five weeks, during which time total disability would be allowed. 
During the next five weeks the insured may be able to work half 
a day, and for that period he might be allowed half the amount. 

Some accident policies provide a certain sum for surgeon's 
fees in case an operation is necessary. For instance, a small sum 
might be provided for a minor operation and a larger sum for a 
major, or serious operation. 

The cheapest form of accident insurance is that provided by 
associations formed for the protection of travelers. Policies in such 
companies cost about nine dollars a year, and they provide for a 
five thousand dollar death benefit. Following are the benefits al- 
lowed by most travelers' accident associations: 

Loss of one eye, one foot, or one hand, $1250 ; loss of both eyes, 
both feet, or both hands, $5000. Weekly indemnity, if disabled 



302 THE BUSINESS OF THE HOUSEHOLD 

through an accident and unable to work, $25 per week for 104 weeks. 
Weekly indemnity, if only partially disabled through an accident, 
and able to work part-time, $12.50 a week for five weeks. Usually 
no indemnity is paid for disability or partial disability for the first 
week or ten days, but if disability continues beyond that period 
indemnity is allowed. In case of death through accident, $5000 
will be paid to the beneficiary or to the deceased's heirs. In most 
travelers' accident insurance associations if death results from acci- 
dent while riding in a passenger coach, on an exclusively passenger 
train propelled by steam, or by electricity in terminals, the death 
benefit is doubled, making the amount $10,000, instead of $5000. 
Such accident associations, although founded for the benefit of com- 
mercial travelers, usually will admit a person who travels during 
the year in pursuit of any business. 

Statistics prove that fewer accidents happen on public convey- 
ances than in the home and on the street. The argument that one 
should not carry accident insurance because he does not travel is a 
poor one. There is more danger in crossing the streets of a large 
city than in traveling a thousand miles on a train. Every head 
of a family should carry accident insurance. 

Health Insurance. — Health insurance is operated on the same 
basis as accident insurance, a weekly indemnity being paid the in- 
sured during illness, the indemnity running for a limited number 
of weeks. No indemnity is usually paid for the first week of sick- 
ness, and a doctor's certificate is always required both in health as 
well as in accident insurance before an indemnity is paid. Some 
policies combine both a health and an accident clause, providing 
indemnity in case of either sickness or accident. 

Casualty or Employer's Insurance. — Many accidents have oc- 
curred to employees through the negligence of employers. A danger- 
ous machine should be safeguarded for the employee by some attach- 
ment that will make an accident well-nigh impossible. Frequent 
accidents to workmen have resulted in many suits against employers 
on the ground of negligence. Often, dishonest employees' took ad- 
vantage of the situation to sue an employer unjustly, and so insur- 
ance companies began to write "Casualty or Employer's Liability 
Insurance Policies." In such insurance the employer paid a lump 
sum to the insurance company, and, under the terms of this policy, 
if any employee were injured the insurance company settled with 
the employee after investigating the claim, but if the claim seemed 



LIFE, ACCIDENT AND HEALTH INSURANCE 303 

fraudulent the insurance company would fight it at its own expense 
through the courts. About half the premiums of such insurance 
went for expenses and did not benefit the employees. 

Since this form of insurance came into existence many laws 
have been passed by the various states, and also by the Federal gov- 
ernment, providing for the compulsory insurance of workers by em- 
ployers against injuries sustained while at work, providing such 
injuries have not been intentionally caused by the employee, or have 
not occurred while the employee was intoxicated or grossly negligent. 
Under these new laws, in most states, if a wage-earner is injured 
while at work, he or his family receives an insurance benefit. 

The importance of these Industrial Accident Compensation 
Laws in safeguarding the budget of wage-earning families cannot 
be over-estimated, since there are 30,000 fatal industrial acci- 
dents a year in America, and several times that many minor acci- 
dents which temporarily incapacitate for earning. 

Although not expressly stated in the law itself, court rulings 
would indicate that under the Accident Compensation Laws, where 
every form of occupation and service is covered by these laws, a 
maid in service might hold her mistress liable for injury sustained 
while in service. These laws in most states, however, unfairly ex- 
clude domestic employees from their benefits. Some companies offer 
a policy which covers all liabilities for accident that may come upon 
the householder, the premium of which is $10 a year. Those hiring 
workers in or about the house should ascertain their legal position 
in relation to possible accidents to employees. 

Life Insurance. — There are two main types of life insurance, 
that furnished by fraternal or assessment associations, which collect 
assessments from members to pay policies upon deaths of members 
as they occur ; and the reserve or "old line" companies, which collect 
premiums varying with the age at which the person takes out his 
insurance, but large enough to build up reserve funds in advance, 
from which, with current premiums collected, the policies are later 
paid. 

Fraternal or Assessment Insurance. — Assessment insurance 
consists of insurance paid from assessments levied upon the mem- 
bers of an association. A certain amount is collected from the mem- 
bers in the form of dues with which they pay the operating ex- 
penses of the association; and upon the death of a member an as- 
sessment of a certain sum is levied upon each member with which 



304 THE BUSINESS OF THE HOUSEHOLD 

to pay the face of the policy matured through the death of this 
member. The policies in such organizations are usually written for 
one uniform amount, say two thousand dollars, although some pro- 
vide for a one, a two, and a three thousand dollar policy. 

As a basis for determining the cost of assessment insurance 
the following figures have been obtained from the "Modern Wood- 
men of America/' covering a period of twenty-four years. These 
represent the mortuary payments made by a member who joined 
the society at the age of 21, January 1, 1893 : $4.40 a year, from 
1893 to 1896; $4, 1897-99; $4.40, 1900; $4.80, 1901; $4.40, 1902; 
$4.80, 1903; $4, 1904; $4.50, 1905-07; $4, 1908; $5, 1909-10; 
$5.50, 1911; $6, 1912-16; a total for twenty-four mortuary pay- 
ments of $115. In addition to this, $1 per capita per annum was 
collected from 1893 to 1909, and since 1909, $1.20 per annum, or 
a total of $25.40. There were also local camp or lodge dues, which 
varied from $1 to $2 a year, so that, striking an average of $1.50 
a year, they would amount to $36 for the entire period. 

The total cost of this $1000 assessment insurance for twenty- 
four years shows as follows : 

Mortuary payments 24 years $115.00 

Lodge dues (averaged) , 24 years 36.00 

Per capita tax, 24 years 25.40 

Total cost of this assessment insurance for 24 years. . . $176.40 
Average annual cost, $176.40 -^ 24 = $7.30. 

As an illustration of the workings of such organizations, it can 
be seen readily that for every 1001 members in the association, with 
the policy written for two thousand dollars, the death of a member 
means an assessment of two dollars from each surviving member. 

The danger involved in this kind of insurance lies in the fact 
that the members of the association are constantly growing older, 
and, therefore, the death rate must increase. If no new members 
were secured it would be but a short time before such an association 
would go out of business, because, as the death rate increases, and 
the membership grows smaller and smaller, the amount of the 
assessment necessary to make up the face of a policy must become 
larger and larger. As an illustration, if there are only five hundred 
members left, it would take an assessment of four dollars from 
each member to pay one two-thousand dollar death claim. If ten 
deaths occurred in the year, the amount to be paid for death losses 
would be twenty thousand dollars, and if there were only five hun- 






LIFE, ACCIDENT AND HEALTH INSURANCE 305 

dred members left to pay this loss, each member would have to pay 
an assessment of forty dollars for the year. 

As the members in such an association become older it is harder 
to secure new members, especially among young men whose ex- 
pectancy of life is much greater than that of the members, and it 
is only by the addition of new members that these associations can 
continue to exist on such a basis. None of such associations has 
been able to keep down the average age of the members by acces- 
sions of new members. In some instances, assessments have ad- 
vanced from nine dollars a year to over sixty dollars a year, but 
this, of course, would cover a period of thirty or forty years. 

"Old Line" Companies Inimical. — Naturally, all "old line" 
insurance companies are opposed to assessment associations, because 
they cannot compete with the rates offered by the assessment asso- 
ciations. It is important to note that the two companies sell a 
different contract, however. The "old line" companies have in their 
favor certain sound economic laws and mathematical facts, which 
prove the fallacy of assessment insurance as a stable and permanent 
form of insurance, and as the only kind upon which to rely. If new 
blood cannot be added constantly to assessment organizations, and 
if the death rate increases, as it must, with corresponding losses, 
it is a mathematical fact that it will be only a matter of time. before 
the assessments become prohibitive and the association defunct. In 
such a case, surviving members 'have probably reached an age, or 
a state of health, that prevents them from being eligible for re-insur- 
ance in any other company, or if they are acceptable, age makes the 
premium almost prohibitive. As a consequence, old age may find 
one without any form of insurance and in a position in which it is 
impossible to re-insure. 

To combat this situation assessment associations are gradually 
reorganizing upon a safer basis by charging larger premiums, which 
vary with the age of the applicant, thus providing a reserve fund 
out of which to pay losses when the old plan of uniform assess- 
ments would have proved insufficient. By paying a higher premium 
in earlier years one is guarded against excessive premiums later. 
This is a step in the right direction — it really means that the 
assessment companies have measurably adopted the reserve plans 
of the "old line" companies, but it involves a considerable increase 
in the rates and full provision for increasing losses has not been 
made. 
20 



306 THE BUSINESS OF THE HOUSEHOLD 

The entire experience in the life insurance field is decidedly 
against assessment insurance on the old plan of a uniform assess- 
ment for persons of all ages; this is evidenced from the fact that 
among three or four hundred organizations which were in existence 
twenty-five years ago not more than a score are still operating, at 
least, on the original assessment plan. With life insurance, the 
degree of risk and hence that of insuring increases practically from 
day to day after a policy is issued; the assessment company meets 
this by increasing the assessment as the years go by, but in old 
age this natural cost is prohibitive and insurance must be given 
up; the old line company meets it by charging a larger premium 
from the first, enough on the average to meet the cost throughout 
the years, and what is paid extra in the early years is kept as a 
" reserve " to pay part of the cost in later years. 

A Real Value in Assessment Insurance. — There is one phase 
of assessment insurance that is not generally recognized by its com- 
petitors, and this is that one secures full value received for each 
payment made, in the way of protection, for a certain specific time, 
and at a rate claimed to be less than that charged by "old line" 
companies. In other words, one pays for that which is received, 
and no more, at the time the payment is made. As before stated, 
the real danger of such insurance lies in the fact that its termina- 
tion, through any cause, may leave one without any insurance, and 
perhaps in a physical or financial position that would make re-insur- 
ance impossible. Assessment insurance should not be one's sole 
reliance — if one can be further protected by an additional policy in 
an "old line" company, so that in case of emergency he will not be 
without any insurance, then assessment insurance may be an ex- 
cellent investment. 

Women's Fraternal Auxiliaries. — Most fraternal insurance 
organizations are organized as lodges, planned on the basis of other 
secret societies These organizations usually support auxiliary bene- 
fit associations for both men and women. They afford women 
the opportunity of securing cheap insurance, sometimes including 
health and accident, as well as life policies. 

Legal Reserve Life Insurance Companies. — A "legal reserve" 
company is one which bases its premium upon the facts of some 
mortality table, which collects as premiums and sets aside in the 
earlier years of the policy sufficient funds to care for the increased 
cost of the insurance when the insured reaches advanced age — the 



LIFE, ACCIDENT AND HEALTH INSURANCE 307 

theory being that should a legal reserve company discontinue writ- 
ing life insurance at any time, the legal reserve accumulated from 
earlier premiums plus future premiums from the policy-holder 
would be exactly sufficient to pay every claim until the last man 
died, without increase in the number or amount of premium pay- 
ments. The legal reserve system enables a life insurance company 
to carry out its contracts by charging a uniform or "level" premium 
determined in advance, which does not change through the years. 
The premium is more than the cost of the insurance in earlier 
years, and this excess is carried over as a reserve by the company 
to later years when the insurance in any year costs more than the 
premium of that year. If any part of a premium remains after 
the death losses are paid and the reserve established, it is, in mutual 
companies, in one of several ways' returned to the policy-holder. 

"Expectancy" of Life. — Premiums are not based upon deaths 
as they actually occur, but upon the probable "expectancy" of 
length of time an individual may be expected to live after attaining 
a certain age. By collecting statistics, covering many years, and 
embracing many thousands of individuals of all ages, statisticians 
have been able to figure with almost mathematical certitude the 
probable length of time a person will have to live after attaining a 
certain age. The premium then is based upon the age of the insured 
at the time insurance is applied for, and it is the same for every 
one of the same sex and of the same age. The premium first 
charged the insured is stable, in that it remains the same during 
each year of the life of the insured, except in mutual organizations 
as above stated. The statistics referred to are called "mortality 
tables," and such a table is shown on page 307 for reference purposes. 
In explanation, the first line of this table shows that from a total of 
100,000 children of the age of ten years 749 die yearly, and that 
the remaining number may reasonably expect to live 48.72 years 
more. 

Stock vs. Mutual Companies. — The legal reserve companies 
are of two general classes — stock and mutual. By stock companies 
is meant those that are operated on a stock plan — the stockholders 
have a proprietary interest in the business and are entitled to such 
profits as may accrue from the business, other than such as they 
voluntarily may return to the policy-holders as "dividends." 

In a mutual company the policy-holders get their insurance pro- 



308 THE BUSINESS OF THE HOUSEHOLD 

tection at net cost, because there are no stockholders to receive any 

profit or dividends from the business. Let it be understood that 

mutual companies, as well as stock companies, must set up and 

maintain a legal reserve, based scientifically upon some mortality 

AMERICAN TABLE OF MORTALITY 

Used by insurance companies in computing expectation of life. 

No. No. Exp't'n No. No. Exp't'n 

Age. living. dying. of life. Age. living. dying. of life. 

10 100,000 749 48.72 53 66,797 1,091 18.79 

11 99,251 746 48.08 54 65,706 1,143 18.09 

12 98,505 743 47.45 55 64,563 1,199 17.40 

13 97,762 740 46.80 56 63,364 1,200 16.72 

14 97,022 737 46.16 57 62,104 1,325 16.05 

15 96,285 735 45.50 58 60,779 1,394 15.39 

16 95,550 732 44.85 59 59,385 1,468 14.74 

17 94,818 729 44.19 60 57,917 1,546 14.10 

18 94,089 727 43.53 61 56,371 1,628 13.47 

19 93,362 725 42.87 62 54,743 1,713 12.86 

20 92,637 723 42.20 63 53,030 1,800 12.26 

21 91,914 722 41.53 64 51,230 1,889 11.67 

22; -. 91,192 721 40.85 65 49,341 1,980 11.10 

23 90,471 720 40.17 66 47,361 2,070 10.54 

24 89,751 719 39.49 67 45,291 2,158 10.00 

25 89,032 718 38.81 65 43,133 2,243 9.47 

26 88,314 718 38.12 69 40,890 2,321 8.91 

27 87,596 718 37.43 70 38,569 2,391 8.48 

28 86,878 718 36.73 71 36,178 2,448 8.00 

29 ... . 86,160 719 36.03 72 33,730 2,487 7.55 

30 85,441 720 35.33 73 31,243 2,505 7.11 

31 ..... 84,721 721 34.63 74 28,738 2,501 6.68 

32 84,000 723 33.92 75 26,237 2,476 6.27 

33 83,277 726 33.21 76 23,761 2,431 5.88 

34 82,551 729 32.50 77 21,330 2,369 5.49 

35 ' 81,822 732 31.78 78 18,961 2,291 5.11 

36 81,090 737 31.07 79 16,670 2,196 4.74 

37 ... . 80,353 742 30.35 80 ..... 14,474 2,091 4.39 

38 79,611 749 29.62 81 12,383 1,964 4.05 

39 78,862 756 28.90 82 10,419 1,816 3.71 

40 78,106 765 28.18 83 8,603 1,648 3.39 

41 77,341 774 27.45 84 6,955 1,470 3.08 

42 76,567 785 26.72 85 5,485 1,292 2.77 

43 75,782 797 26.00 86 4,193 1,114 2.47 

44 74,985 812 25.27 87 3,079 933 2.18 

45 74,173 828 24.54 88 2,146 744 1.91 

46 73,345 848 23.81 89 1,402 555 1.66 

47 72,497 870 23.08 90 847 385 1.42 

48 71,627 896 22.36 91 462 246 1.19 

49 70,731 927 21.63 92 216 137 .98 

50 69,804 962 20.91 93 79 58 .80 

51 68,842 1,001 20.20 94 21 18 .64 

52 67,841 1,044 19.49 95 3 3 .50 



LIFE, ACCIDENT AND HEALTH INSURANCE 309 

table and the assumption that the company will earn a certain 
rate of interest on all of its invested funds. Nearly all of the 
older legal reserve companies were organized and are still operated 
on the mutual plan, and there has been a recent tendency for the 
stock life insurance companies to change to the mutual system. 

One state, Wisconsin, has undertaken to sell life insurance to 
its citizens, and another state, Massachusetts, has authorized the 
mutual savings banks to sell life insurance — in both cases upon 
the reserve plan and at rates slightly more favorable than those 
of private companies. 

Kinds of Policies. — Of the policies issued by insurance com- 
panies one fundamental distinction is that between "participating" 
policies or those upon the premium of which the company gives 
an annual return or rebate called a " dividend " ; and non-partici- 
pating policies upon which a fixed premium is charged without 
deduction. The latter are at a slightly lower guaranteed rate; 
the former collect a larger premium but return part of it as the 
"dividend." The tendency is to favor the participating policy. 
There are four general kinds of insurance contracts : term insur- 
ance, ordinary life, limited payment life, and endowment. 

A Term Insurance Policy furnishes protection for a certain 
number of years only. The policy may read five, or ten, or fifteen 
years, and at the end of the specified period the policy becomes 
void just like a fire insurance policy. No benefit is paid by such 
a policy unless death occurs within the period specified; since the 
risk of death within such a period is slight for most persons, the 
cost of such insurance is low. A person of 30 will pay about $12 
a year for a ten-year term policy of $1000, giving protection until 
40 years of age. 

Ordinary Life Insurance gives protection for the entire life- 
time of the insured, who pays for it a premium unchanged through- 
out life. If the insured reaches a considerable age, many modern 
policies provide that no further premium is paid, say after 70 years 
of age. Such a policy would cost a man of 30 years of age a 
premium of approximately $20 a year as long as he lives, and will 
pay his designated beneficiary $1000 at his death. 

Limited Payment Life Insurance gives protection for the entire 
life-time like the "ordinary life," but it requires the payment of a 
larger premium for a definitely limited number of years. For ex- 
ample, a youug man of 30 years of age will pay perhaps $30 a year 



310 THE BUSINESS OF THE HOUSEHOLD 

for 20 years for $1000 of insurance payable at his death. This 
would be a "20-payment life policy" — its advantage is that it 
obviates the financial burden of premiums in old age. 

Endowment Life Insurance combines a term's life insurance 
policy, which would pay a death benefit during its 10-year or 20- 
year term, with a contract to pay the face of the policy at the end 
of the period to the insured, if then living. A young man of 30 
would pay approximately $45 a year for 20 years for a "20-year 
endowment policy" of $1000 ; this would pay $1000 to a beneficiary 
if the insured dies within 20 years, or $1000 to the insured him- 
self if living at the end of that time. Of the premium paid in 
the illustration cited, $12 may be considered to be the cost of 
the term insurance, and $33 to be a deposit which accumulates the 
endowment. 

Annuity Insurance. — This is exactly the reverse of a life insur- 
ance contract, in that under life insurance policies the insured pays 
premiums annually during his life and the company pays a lump 
sum at death, whereas, in an annuity the policy-holder pays a 
lump sum in the beginning and the company pays annual instal- 
ments back to him during his life. There are several modifications 
of the latter plan of annuity insurance. It is especially important 
as a method of wisely using a sum of money available for the sup- 
port of a person advanced in years; it guarantees against loss of 
investment and gives the largest possible annual sum as long as 
the person lives. 

Borrowing on an Insurance Policy. — This is a feature which 
is permitted by all legal reserve companies, but it is discouraged 
as much as possible, because it is generally conceded that borrow- 
ing on a life insurance policy is simply borrowing from one's 
widow and children, and that if a man has borrowed the equity 
on his policy he is very likely to allow the policy to lapse rather 
than pay the interest, and frequently the man who borrows on 
his policy eventually finds himself without insurance protection. 

While this feature is discouraged, the insured has a legal right 
to borrow his equity at any time. The amount which can be bor- 
rowed is stated in the policy, and increases as premiums are paid 
in year after year. So far as the company is concerned, of course, 
the amount so loaned is a good asset, because the amount of the 
loan is always deducted from the face of the policy in event of 
death of the insured. 



LIFE, ACCIDENT AND HEALTH INSURANCE 311 

Change of Beneficiary. — Under most insurance contracts at 
the present time a person can name as beneficiary any member of 
his family or other person who has an insurable interest in his 
life. When taking insurance a person can reserve the right to 
change the beneficiary at will, or can readily insert a clause so that 
no change can be made or no loan secured on the policy without 
the consent of the beneficiary. Under the laws of some states 
no one can be designated as beneficiary, or at least recover under 
a policy, unless there exists some insurable interest in the life of 
the insured. 

The Amount of Insurance an Individual Should Carry. — 
This depends upon the insurance value of the life to be insured. 
If possible, one should carry enough insurance so that in the event 
of death the monetary value of the life should be nearly replaced. 
For instance, theoretically, if a man earns $1500 a year and one- 
third of that is spent on himself, leaving $1000 for the family, 
then $20,000 insurance would not be excessive, because the widow 
would be required to invest $20,000 at five per cent, interest to 
yield her $1000 a year. At any rate, life insurance should be re- 
garded as a necessity and should be provided for before indulging 
in luxuries. 

From a practical point of view, it would be out of the question 
for a man earning only $1500 a year to pay the premiums on a 
$20,000 insurance policy. Even if such a policy were to be taken 
out at 21 years of age the annual premiums would amount to $400 
or more, according to the kind of policy taken. The illustration, 
however, serves to bring home the necessity for providing some 
agency for continuing after death, for one's family, the income 
previously earned. 

Term insurance through the years until children are self-sup- 
porting is a wise plan. Also a combination of legal reserve and 
fraternal insurance may make it possible to carry a larger amount 
of insurance than otherwise would be possible, and this, combined 
with accumulated savings profitably invested, might at least ap- 
proximate the desirable goal of full financial protection. 

Insurance for Women. — Nearly all of the "old line" com- 
panies at this time use about the same premium rates for women as 
for men. 

Special Privileges. — After premiums have been paid for three 
years most insurance companies allow a "cash surrender" value 



312 THE BUSINESS OF THE HOUSEHOLD 

or refund of a certain sum on the total amount of premiums paid, 
should the insured wish at any time to discontinue this insurance ; 
some policies provide for a special settlement at the end of stated 
periods. The cash surrender value of a policy is also the sum 
which one may borrow from the company on the policy. All in- 
surance is now "non-f orfeitable" after a period of a year or more, 
that is, the contract cannot be broken by claims made by either 
party. If a premium is not paid, thirty days of grace are allowed. 
Then the policy terminates, but automatically certain adjustments 
are made; the cash value of the policy is used to "extend" the 
face of the policy as paid-up insurance for a period depending upon 
the amount of the cash value ; or, if preferred, the extension value 
is in the nature of a smaller sum of paid-up insurance payable at 
the death of the insured, whenever that may occur; or, again, if 
preferred, the cash value will be paid at once to the insured. Termi- 
nated insurance may often be reinstated, although a physical ex- 
amination to prove that the person is insurable may be required. 
Policies give various privileges also, as to the payment of benefits, 
such as a lump sum, or an annuity for a term of years, or an 
annuity for the life-time of a definite beneficiary, and these possi- 
bilities should be checked up in a proposed policy. 

Insurance of Infants. — A form of insurance taken by some 
families is not wholly commendable. This is sometimes known as 
"Baby Insurance," or "Death Insurance." It often begins at birth 
and calls for a certain sum paid regularly, from five to twenty-five 
or fifty cents a week. If the baby dies the money is available for 
the funeral expenses. 

In Conclusion. — Every adult should become familiar with the 
various kinds of insurance. Sample policies should be secured and 
read over carefully. Most states have insurance commissioners who 
will furnish information regarding the affairs of the companies 
doing business in the state. The only thing that will stand in court 
is the printed or written and signed contract, known as the "policy." 

QUESTIONS 

1. What are the principal arguments in favor of life insurance? Of rcci- 

dent insurance? 

2. What is the basis upon which accident insurance is fixed ? Life insurance ? 

3. What is meant by "legal reserve" or "legal reserve companies "? 
4 What is meant by "old line insurance"? 

5. What is "assessment" insurance? 



LIFE, ACCIDENT AND HEALTH INSURANCE 313 

6. What is the danger that may result from depending entirely upon as- 

sessment insurance? 

7. What are some of the benefits of assessment insurance? 

8. Should the investment features of " old line insurance " influence one 

in taking out a policy? 

9. What is the difference between " straight " life insurance and ten, 

twenty, or thirty year payment policies? 

PROBLEMS AND DEMONSTRATIONS 

1. Procure a statement from an "old line" company showing the cost of 

a thousand dollar straight life policy for a man 46 years old, and the 
returns that may be expected upon the policy at maturity. 

2. Procure such a statement for* a twenty-year payment policy based upon 

the above data. 

3. Secure a statement of the cost and benefits to be derived from a $1000 

policy in some assessment association, based upon the above data; 
such an association not to be on a " legal reserve " plan. 

4. Select the form of life insurance that suits you the best and ascertain 

what it will cost per thousand dollars, and state the benefits to be 
derived from the policy. 

5. John Smith earns $2000 per year. He is able to save out of this, $200 

per year and during the course of five years he has accumulated $1000. 
He desires to take out enough life insurance, so that at his death the 
interest on the life insurance and the $1000 savings, at 10 per cent., 
will equal the actual, annual living expenses of his family. How 
much insurance will he have to take out? 

6. If the annual premium on the insurance is $26.80 per thousand, how 

much will his total insurance cost him per year? 

7. What per cent, of John Smith's annual income would be the insurance 

premium he would have to pay ? With his income, could he afford 
that amount of insurance? 

THEMES FOR DEBATE 
Resolved: 

1. That assessment insurance is economically warranted. 

2. That investment should not be considered as an important factor in life 

insurance. 

3. That insurance for women is economically vital. 

REFERENCES 

Huebner, S. S., Life Insurance. N. Y. : D. Appleton & Co. 

Huebner, S. S., Modern Insurance Problems. Phila.: Am. Academy of 
Political and Social Science. 

Hardy and Field, Insurance, Real Estate. N. Y.: Alexander Hamil- 
ton Institute. 



21 



CHAPTER XXV 
SAVINGS AND METHODS IN SAVING 

Everyone should save something, and saving should become a 
regular, systematic and continuous habit. 

" Something " may consist of a dollar a week, or a dollar a 
month. "Kegular" should mean that the same amount during 
the same time should be saved ; at least not less than the minimum 
amount determined upon. Any habit is systematic, and the habit 
of saving should not be short-lived and intermittent, but should 
continue without interruption, through life. 

Two Favorable Opportunities in Life to Save. — There are 
two distinct stages in a man's life when the opportunity for saving 
is well-timed. This, of course, does not mean that one cannot save 
at all times. The first opportunity comes in youth before the burden 
of a family is acquired. Then one's sole care is his own support, and 
such contributions as he should fairly make to his family. Then 
a man has an unusual opportunity to save, to make investments, and 
to lay the basis for an old age fund. Statistics, however, do not show 
that the unmarried man acquires more, or even as much property, 
as does the married man. This opportunity comes to the unmarried 
woman as well as to the man, since she is more and more filling 
the years between school and marriage with wage-earning employ- 
ment. During this period of life, both men and women should be 
saving and making investments and preparing for the future. Such 
a policy, for one thing, insures a suitable start for a home, when 
one marries, and if one never marries, it makes the beginning 
of a competency. With the married man, the maintenance of a 
home, the coming of children, their education, sickness, misfortune, 
perhaps death, all contribute to drain his resources. In this day of 
advancing prices, a man who under such conditions can lay much 
aside as a reserve, is an exception. 

The other opportunity to save comes when children have grown, 
and have left the parental roof as self-supporting individuals, or 
when they become able to contribute and do contribute to the 
maintenance of the home. 

Two Types of People. — In general, there are two types of 
314 



SAVINGS AND METHODS IN SAVING 315 

people: those who save and those who do not. Those who do not 
save, in turn represent two other classes: the improvident, with 
whom we are not so much concerned, and those who consider the 
fundamental principles of life of more importance than the acquisi- 
tion of money and property. 

Two Principles. — In starting out in life, every thoughtful 
couple is confronted with two problems. 

The first is the determination to attain success and financial 
independence. " Some day we must have a competency ; some day 
we must have the best house in town ; some day husband must be in 
business for himself; some day the children will go to college; 
some day we will tour Europe. In the meantime we must figure 
very closely. We must plan and economize and deny ourselves." 

" Save ! save ! save ! " becomes the slogan of that family. 

The second problem involves the principle that life is an art; 
that it has a purpose ; that it is to be lived, to the fullest, every day, 
as it comes ; the most enjoyment possible must be gained, and the 
greatest good accomplished ; that character is more important than 
money in the bank ; that culture is of more worth than gold ; that 
the first consideration must not be the acquisition of money, and 
that saving must not be the prime requisite, but that all of these 
other things must come first. If at the same time money and prop- 
erty can be accumulated, well and good; if not, they must be 
sacrificed for the former. 

Saving as the Prime Requisite. — The great danger from the 
adoption of the principle which puts savings ahead of other things, 
lies in the fact that the characteristics necessary to carry the saving 
plan to its logical conclusion are antagonistic to the development 
of the higher life. As the habit of saving becomes perfected, and 
as accumulations grow, pleasure and delight, comfort and apprecia- 
tion in that which contributes to real culture diminish. 

If the monetary standard once fixed as the minimum has been 
reached, it will be found that the man who saves, now pushes that 
standard a little higher, and when that new measurement has been 
reached, it is again thrust upward. The time comes, perhaps, when 
the largest house in town has been purchased ; husband is not only 
in business for himself, but he is a slave to his business. If the trip 
to Europe has been taken, anticipated enjoyment has been found 
lacking because the cultural side of life has been neglected and 
stunted. 



316 THE BUSINESS OF THE HOUSEHOLD 

The spending of money, for such, either becomes a vulgar evi- 
dence of extravagance or an operation painful to its hoarder. The 
power to appreciate that which money can buy has been lost. 
Character has been neglected; culture overlooked and scoffed at; 
religious principles perhaps lost; friendships banished; family ties 
loosened, even disposition and health may be ruined. This is the 
natural tendency of all who pursue the saving habit to the extreme. 
Death indeed may intervene as it did with the man who would 
" tear down his barns and build greater " and the whole life-plan 
founded on saving as its first principle may thus come to naught. 

Saving a Secondary Consideration. — Carried to its extreme, 
the second plan would, perhaps, prove equally disastrous, although 
in a different way. This plan, which aims at making the things 
of the " higher life" more important than material things, may 
involve the danger of slackening effort and, of too great a disregard 
for money itself. A competency is not so liable to be acquired, in 
which case sickness, misfortune, failure in business, loss and other 
emergencies prove serious burdens. 

The habit of easy spending is apt to be acquired under this 
plan. Tastes for luxuries that should not be afforded are liable to 
be cultivated, and a standard of living attained that may result 
in. a desperate effort to make both ends meet. Luxuries easily be- 
come seeming necessities, and doing without them then becomes 
a hardship. 

On the other hand, there is much to commend itself in the 
adoption of the principle, that life is an art and that money is 
intended to serve, and not to rule. It does seem that a reasonable 
approximation to both principles might be attained. In so doing, 
however, one or the other of these two principles must take 
precedence. 

A Golden Mean. — One should realize that the prime purpose 
of life is not to save money or to acquire this world's goods; but 
that life means the development of character and the progress of 
the individual and of those for whom he is responsible. One 
should learn that the acquisition of money cannot possibly take 
the place of character, that wealth by no means spells happiness, 
or even contentment, and that of all the things that make life 
really worth while, wealth and material possessions are the least, 
and not the greatest. 

If this is true, then the first consideration should be the acquisi- 



SAVINGS AND METHODS IN SAVING 317 

tion of that which contributes to the growth of the soul ; that which 
means the upbuilding of character and citizenship ; that which means 
the ever onward march of progress for the individual and for the 
race. These things should come first, and in striving for them, one 
may know that he is seeking " first the kingdom of God " and 
should be convinced that all valuable things will be added. 

In more materialistic words, the prime requisites are a respect- 
able and suitable environment; a modest home and appropriate 
home conditions; comfortable clothing; sufficient and nourishing 
food; a fair education; a reasonable degree of culture — above all, 
a deep and an abiding faith in the goodness of God and the wisdom 
of his purposes. These are fundamental for true citizenship, happy 
marriage relations, proud parenthood and a reasonably happy life. 

If after these things have been provided, savings may be accu- 
mulated, well and good; but if one must be sacrificed at the ex- 
pense of the other, let the accumulation of money wait. Having, 
however, reached a point at which there need be no sacrifice of 
cultural ideals, definite plans for saving should be formulated and 
put into practice before luxuries are indulged in. 

A Short-sighted Policy. — Many parents take their children 
from school while still in the " grades " that they may profit from 
the pitiful wage of their offspring. Statistics show an ultimately 
great increase in earning capacity for every additional year spent 
in school. If the parent is* inspired by the most selfish motive, 
the net gain from keeping the child a few more years in school will 
show a hundred per cent. ; a gain that may continue for many 
years, or so long as the parent is dependent upon the child. 

In the greed to save and acquire, the immediate gain is all 
that is considered by many. The fact that a decent standard of 
living, a reasonable degree of culture, a happy, broad-gauge dis- 
position, actually count in the ability to earn, is little understood 
by most people. If character is to be stunted and disposition ruined 
through the development of miserly habits, then earning capacity is 
going to be correspondingly limited. 

" To him that hath shall be given " is a Biblical saying that 
is daily proved. The liberal spender always seems to have more of 
this world's goods than the excessively frugal or miserly. Such 
facts, if facts they are, should not lead to reckless expenditure; 
but they do prove that the harvest is absolutely dependent upon 
the discretion used in the sowing of sufficient seed, 



318 THE BUSINESS OF THE HOUSEHOLD 

The Conclusion of the Whole Matter. — If then one can learn 
the difference between " abundant living " and luxury ; between 
culture and ignorance; between a reasonable latitude in the mat- 
ter of expenditure and profligacy, then as soon as possible, the 
lessons of thrift should be mastered. 

Eegular and systematic saving, regardless of the amount, should 
be practiced as soon as possible. A nickel a day, a dollar a week 
or month, or more if possible, should be laid away, and when a 
sufficient amount has been accumulated it should be invested and 
reinvested. If this course is persisted in long enough, a very fair 
competency will be acquired. The habit formed will indeed be 
of more value than the actual amount saved, but no habit should 



m. 



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Fig. 39. — A saving check 

obtain at the expense of culture. Cultural ideals must not be 
sacrificed for the acquisition of material luxuries. 

Having decided that true saving is a factor in character build- 
ing; that "Savings" depend largely upon the details of good 
management in the household such as care in the purchase and 
utilization of food and other materials, we may now consider 
certain methods that will introduce system and safety into the 
questions of household finance. 

A Saving System by " Saving Checks." — If the check-book 
system of paying bills has been adopted, it will be understood that 
under this plan all money from every source is to be deposited 
in a joint bank account, subject to the check of either husband or 
wife without the signature of the other. It is also understood that 
all bills are to be paid by check and that a certain sum is to be 
saved from the income every month. Make out a check upon the 



SAVINGS AND METHODS IN SAVING 319 

bank for the sum, payable to " ourselves " but do not sign the 
check (Fig. 39). Make any notation desired upon the check; be 
sure and enter it upon the stub of the check-book, and deduct the 
amount from the balance in the bank as shown on that stub, the 
same as though it had been made payable to someone else. It 
should not be signed because it is not to be used, and signed checks 
should not be left around the house. 

Deducting the amount of the check from the balance on the 
stub prevents one from being tempted to use the money, because 
the balance in the bank as shown by the stub shows only the amount 
actually needed for current bills. While you really know that there 
is to your credit in the bank more money than that shown by the 



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er «ryw».am>«iiiujr*toi« 



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Fig. 40. — Check for coal 

stub of the check-book, you do know that it is not there for current 
needs. 

Of course, at the end of each month, in checking up the bank 
account, these " saving checks " that are being held will appear as 
unpaid and outstanding. In making one's own statement at the 
end of the month these unpaid checks must be accounted for in 
order to make the account balance, as the bank statement will show 
a greater balance than your check-book stub. 

In time one comes to forget these checks that are being held 
and to look upon the balance shown by the stubs as the only 
available funds with which to pay current expenses, and this pre- 
vents the temptation to spend, that a surplus of funds as shown 
by the balance might induce. 

Budget Apportionment Savings Checks. — Sometimes the 
purchase of clothing, a piece of furniture or some longed-for indul- 



320 THE BUSINESS OF THE HOUSEHOLD 

gence, or even the payment of a large bill, may require a consider- 
able outlay of cash at a time. 

Some apportion a certain amount each month as " extras " with 
which to meet these expenditures when they become necessary. 
In other words, a budget system is adopted, as explained in a 
previous chapter. As an illustration, if the fuel bill amounts to 
one hundred and eighty dollars a year, the average per month is 
fifteen dollars. Instead of allowing this expense to come as a 
burden in the winter months alone, which would mean either 
the expenditure of this large sum in one cash payment, or perhaps 
a monthly payment of thirty dollars for at least six months, it is 
proposed to lay aside the sum of fifteen dollars each month in the 
year with which to meet this expense. In this way the appor- 



City Xulioittil Bank 





tet*m 



. /-^< - 






CHICA©OCUA»lN«f»OUS6 



Fig. 41. — Budget check 

tionment for the summer months will reduce the strain during the 
winter months. The question arises as to the best method of caring 
for these monthly apportionments. 

Instead of holding them in cash, make out a check for fifteen 
dollars, the first of each month, marking it " for coal," as shown 
by Fig. 40. 

'Hold such checks the same as the "savings checks," deducting 
them, of course, from the balance as shown on the stubs. The same 
plan can be used for all similar apportionments, a separate check 
being used for " clothing," another for " fuel," and so for other 
large sums to be met later. 

If there are a number of these apportionments to be made each 
month to cover expenditures during subsequent months, then one 
check each month for the total of all of them may be drawn, and 



SAVINGS AND METHODS IN SAVING 321 

the separate items and amounts making up the amount may be 
marked at one end or on the back of the check, as shown in Fig. 41. 

It probably will be found more practical, however, to stick 
to the one-check-for-each-item-each-month plan. Payments to be 
made within the mointh, of course, are not to be included in the 
budget checks. 

This is a very simple system of keeping one's savings and for 
apportioning one's income for future distribution, and little book- 
keeping is required. For current expenses, one learns to depend 
upon the balance in the bank as shown by the check-book stubs and 
the outstanding checks are not counted upon until they are actually 
needed for the purpose planned. 

Methods of Using Apportionment Checks. — When the 
time comes that it is necessary to use either savings, or money 
apportioned for special purposes, one or more of these specific 
checks may be taken, according to the amount of the expenditure 
required, and the checks should be marked cancelled on the " Out- 
standing list " of checks as shown on the stubs of the check-book. 
Add the amount of the check or checks to the balance in the bank 
as shown on the stub, placing the number of the check or checks 
opposite the same for purposes of identification, and marking the 
same as " Check cancelled." The entry on the stub will appear 
as follows: 

Balance $215.00 

Budget Checks — 

Cancelled No. 26 15.00 

Cancelled No. 30 25.00 

Cancelled No. 36 10.00 

$265.00 

Destroy the check or checks so added into the bank balance, and 
draw a new check for the expenditure that is to be made, in the 
regular manner, payable to whomsoever it is intended for. 

Of course, if the apportionment check or checks amount to more 
than the sum needed, the balance may be held in the apportionment 
fund by drawing a new and unsigned " Apportionment check " for 
the amount not needed. 

Advantages of the " Savings Checks." — It will be seen that 
if one is holding outstanding checks to the amount of two hunderd 
dollars, the bank will show your balance with them is two hundred 
21 



322 THE BUSINESS OF THE HOUSEHOLD 

dollars more than your own check-book stubs will indicate, because 
you have deducted that amount from your balance on your stubs. 

Emergencies come to every family, and it is often necessary to 
pay unexpected demands which have not been provided for. While 
one might be able to make up such a payment within the next 
thirty or sixty days, the immediate payment might be embarrassing, 
and borrowing might have to be resorted to ; but with this method, 
one would know that the bank balance is really two hundred dollars 
greater than the balance shown on the check-book stub, and that it 
would be entirely safe to draw a check with which to pay the 
unexpected demand. Then as soon as possible the amount so bor- 
rowed from an " Apportionment fund " should be returned. Of 
course, one should not make a practice of borrowing from " Peter to 
pay Paul," but in emergencies this is perfectly permissible. 

Salaried people who receive pay-checks the first of the month, 
or during the middle of the month, and who desire to pay their bills 
the first of each month, often find their bank balances inadequate, 
pending the arrival of the regular pay-check. This As also true 
when the receipts of rentals have been deferred. With this system, 
however, one knows that one is holding a sufficient amount of out- 
standing checks and that it is safe to pay current bills promptly in- 
stead of awaiting the arrival of the pay-check or of the deferred 
rents. When such checks do come, their deposit will equalize the 
expenditures. 

Another advantage of this system lies in the fact that in the 
course of time the bank account shows an average daily balance of 
considerable proportions, and this attracts the banker's attention. 
The banker begins to recognize this depositor as a good customer 
with possibilities; his credit soon becomes established, and it is not 
long before he becomes one of the factors with whom every banker 
reckons. If the savings were kept in a separate savings account 
in the bank, or if the apportionments were held in cash, the same 
results would not be accomplished. 

It is a good plan at the end of the year to transfer all balances 
left in the various budget funds, unless held in allotment for some 
future need, such as fuel, etc., to the savings fund. 

Such " Budget apportionment checks " until used can be filed in 
envelopes, each bearing a description of contents on the outside; 
or, if there are many series of checks, in an alphabetical file. (See 
also p. 270.) 



SAVINGS AND METHODS IN SAVING 323 

Investments. — While the subject of investments cannot be 
treated here, it should be mentioned in this connection. When one 
has accumulated several hundred dollars, and there is a sufficient 
working capital left in the checking-account at the bank, the surplus 
should not be left in the checking-account or even in a savings 
account where it draws only three per cent, interest. 

The banker should be consulted and his advice secured as to 
how you may loan this surplus or invest it at a greater return than 
three per cent, interest. Money should be kept invested. Merchants 
figure to " turn " their stock a certain number of times a year; that 
is, they expect to buy and resell yearly a certain kind of stoek a cer- 
tain number of times. In the same way, one should expect to 
" turn " his money as often as possible, that is invest it as soon as 
enough is accumulated, and thus secure the advantage of compound 
interest. 

One of the best investments is " real estate " and real estate 
mortgages, but unless one is very sure of one's ground no in- 
vestment of any kind should be made without consulting a good 
banker. 

Caution. — Do not take the word of friends, relatives or 
strangers in any matter relating to investments, and do not lend 
money to them. They may all be honest and sincere but the only 
judgment one should rely upon in such matters is the advice given 
by a good, honest and practical banker. On the other hand, one 
should not borrow from relatives or friends. The business of the 
bank is to loan money, and one should first avail oneself of what 
the bank has to offer, before resorting to other sources for loans. 

Interest. — Savings Banks usually pay 3 per cent, to 3y 2 per 
cent, interest on deposits. From long experience it has heen found 
that banks cannot safely afford to pay more than 3 per cent, 
or 4 per cent, interest at the most on such deposits. One should 
be wary of banks that offer more than 4 per cent, interest. 

Banks usually charge 6 per cent, interest on money loaned to 
customers for short periods of time. Such loans are usually made 
for thirty, sixty or ninety days. 

Eeal estate mortgages usually draw from 5 per cent, to 6 per 
cent, interest, although farm mortgages in western states bring 
from 8 per cent, to 10 per cent, interest. 

Compound interest means interest on interest that has been 
added to the original deposit, loan or investment. For instance, 



324 



THE BUSINESS OF THE HOUSEHOLD 



$100 at 3 per cent, interest would earn $3 in a year; at the end 
of the year the $3 being added to the original amount would mean 
$103 drawing 3 per cent, interest. 

It is hard for one to realize the importance of compound interest. 
Any sum will double itself in about seventeen years and a half at 
4 per cent, interest compounded semi-annually. So great is this 
power of compound interest that laws in various states prohibit 
savings banks from paying interest on accounts that have remained 
undisturbed for certain periods of time ; generally twenty years. 

What Might Be Saved in Ten Years. — The following table 
shows the amount that might be saved in ten years if a certain sum 
was set aside monthly, and invested at 4 per cent., compounded 
semi-annually : 



Monthly 
saving 

$2.50 

4.00 

5.00 

6.00 

7.50 

10.00 

15.00 

20.00 



With interest 
would in 10 

years 
amount to: 

$368.00 

589.00 

736.00 

885.00 

1,106.00 

1,475.00 

2,212.50 

2,950.00 



The importance of this subject can hardly be overestimated, as 
shown by the following tabulation : 

ACCUMULATION OF WEEKLY DEPOSITS 

Of One to Ten Dollars In One to Ten Years, When Interest is 

Compounded Semi-Anntjally 

At Three Per Cent. Per Annum 







02 


02 


02 


03 


02 


02 


02 


02 


02 


3*8 


oS 


c3 


o3 


o3 


U 

o3 


o3 


03 


03 


f-i 

03 


03 
CD 


CD r, 




o 


CD 


CD 


CD 


CD 


CD 


CD 


CD 


>> 


^ & 


{X 


>> 


>» 


h 


>» 


>> 


>> 


>> 


>> 


Q 


£q 


•"■ 


<N 


CO 


Tj< 


»C 


CO 


1> 


00 


OS 


1-H 


$1.00 


52.74 


107.06 


163.03 


220.71 


281.13 


342.36 


405.44 


470.47 


537.38 


607.37 


2.00 


105.49 


214.17 


326.14 


441.51 


562.38 


684.87 


811.06 


941.08 


1,075.05 


1,215.08 


3.00 


158.24 


321.28 


489.24 


662.31 


843.62 


1,027.35 


1,216.65 


1,411.67 


1,612.61 


1,822.65 


4.00 


210.99 


428.36 


652.32 


883.07 


1,124.84 


1,369.83 


1,622.23 


1,882.28 


2,150.23 


2,430.30 


5.00 


263.73 


535.45 


815.40 


1,103.84 


1.406.04 


1,712.30 


2,027.81 


2,352.86 


2,687.79 


3,037.87 


6.00 


316.49 


639.53 


972.35 


1,318.31 


1.680.78 


2,048.08 


2,426.50 


2,816.36 


3,218.07 


3,637.96 


7.00 


369.24 


749.67 


1,155.61 


1,545.44 


1.968.53 


2,398.20 


2.839.96 


3.295.53 


3,764.49 


4,254.66 


8.00 


421.99 


856.75 


1,318.69 


1,764.14 


2.247.64 


2,737.57 


3,242.34 


3,762.39 


4,298.24 


4,858.33 


9.00 


474.73 


963.85 


1,485.76 


1,986.94 


2.530.92 


3.082.17 


3,650.12 


4,235.25 


4,838.15 


5,468.32 


10.00 


527.48 


1.070.96 


1.630.87 


2.207.77 


2.812.20 


3,424.72 


4.055.76 


4.705.90 


5,375.79 


6,075.98 



SAVINGS AND METHODS IN SAVING 



325 



If money is invested at interest it is only a matter of time before 
it will double itself. The following table shows for various rates of 
interest, the length of time required for a sum to double itself: 

Rate of interest Principal will double itself 

At simple At compound 
Per interest interest in 

cent. in years years 

1 100.00 69.66 

3 33.33 23.45 

Sy 2 28.57 20.15 

4 25.00 17.67 

5 20.00 14.21 

5% 18.18 12.94 

6 16.67 11.90 

7 14.29 10.24 

Interest for Parts of a Year. — Interest on parts of a year at 6 
per cent, is one-half of one per cent, a month ; at other rates, it may 
be figured on the basis of the following table: 



Interest 



At 3 per cent, 
a year 



At 4 per cent, 
a year 



At 5 per cent, 
a year 



At 8 per cent, 
a year 



For 

For 

For 

For 

For 

For 

For 

For 

For 

For 10 

For 11 

For 12 



month . 
months 
months 
months 
months 
months 
months 
months 
months 
months 
months 
months 



Per cent. 

% 
X 
% 
1 

IK 

m 

2 

2}i 

2}i 

2% 

3 



Per cent. 

% 
1 

m 

m 

2 

2% 

2% 

3 

3% 

3% 

4 



Per cent. 

Yn 
% 

1% 

2& 

2\{ 

2% 

3% 

m 

4Ka 

5 



Per cent. 
% 

IX 
2 

2% 

4 

4% 

6 

6% 

7% 
8 



Banker's Partial Payment Bonds. — A comparatively new 
plan of saving is being offered by reliable banking institutions 
throughout the United States, in the form of partial payment 
bonds. They offer a certain, definite method of saving. They repre- 
sent the obligations of the banks issuing them, and they are pro- 
tected by the resources of the same. 

A definite amount is deposited in the bank each month for 3 



326 THE BUSINESS OF THE HOUSEHOLD 

certain number of years, according to the amount of the bond pur- 
chased, or the amount desired to save, as follows : 





Amount of 


Number of 


Amount of 


monthly- 


monthly pay- 


bond 


payment 


ments necessary 


$1,000 


$3.33 


216 


1,000 


6.96 


120 


1,000 


15.24 


60 


500 


3.48 


120 


500 


7.62 


60 


250 


7.96 


30 


100 


8.17 


12 



From the above it will be seen that a thousand dollar bond 
may be acquired in five years, ten years or eighteen years, according 
to the amount deposited monthly. 

If one for any reason wishes to discontinue payments, the full 
amount paid in will be returned by the bank, and if payments have 
been made for one year or more, interest on the same will be paid 
the depositor at the same rate paid by the bank to savings depositors, 
subject only to any withdrawal notice in accordance with the pro- 
visions of the banking law. At the end of the period, or at maturity, 
the full face of the bond will be paid. 

Interest paid on the deposits is compounded, and when the pay- 
ments have been completed a bonus is added to the total payments 
and interest, to make up the face value of the bond. 

Banks issuing these bonds will loan the full amount paid in 
upon them at current rates of interest. The value of these bonds 
lies in their security and in the habits of saving formed in accumu- 
lating the face value of the bonds. The fact that the depositor 
may withdraw his savings at any time, together with the assurance 
of safety, makes them a very desdtrable investment for those with 
little money to invest and without experience in the making of 
investments. 

Liberty Bonds and Thrift Stamps. — These forms of invest- 
ment are the result of war-time measures and need no explanation 
here. The student, however, should become familiar with their 
nature. Information may be obtained from any postmaster or bank. 
The Thrift Stamps should not be confused with the Postal Savings 
Stamp explained elsewhere. The Thrift Stamp is not a permanent 
factor, although it is to be hoped that the Government make it such. 



SAVINGS AND METHODS IN SAVING 327 

In Conclusion. — Saving should first be systematic, even though 
the amount saved each week or month be very small. Eegular habits 
of saving count in the long run. Fix a certain proportion of the 
income to save each month. See that all savings funds are at least 
drawing interest at 3 per cent. When a sufficient amount has been 
accumulated, invest it under the advice of some good banker in an 
investment drawing 5 per cent, or more. 

QUESTIONS 

1. When does one generally have the best opportunities) to save? 

2. Name two principles that one may adopt in starting out in life that 

may have a bearing upon the question of saving? 

3. What are the advantages of each? The disadvantages? Is there a 

" golden mean " ? 

4. Should one stint one's self of life's necessities in order to save? 

5. What should be the prime purpose in saving? 

6. Why is regularity necessary to successful saving? System? 

7. What is the check-book system of saving? 

8. How does the check-book system of saving and of apportioning the 

budget increase one's capital and balance in the bank? 

9. What proportion of one's income do you think one should save? 

10. What is compound interest? 

11. Why is it not wise to depend upon friends, relatives or "agents" for 

advice in relation to the investment of money? 

12. Who should be consulted in relation to investments? 

PROBLEMS AND DEMONSTRATIONS 

1. Ascertain from the nearest savings bank the rate of interest paid on 

savings accounts ; from the savings department of a commercial bank. 

2. Ascertain from the nearest bank that deals in real estate loans, the 

amount of interest one might secure on real estate mortgages. 

3. Ascertain from the nearest bank the rate of interest charged on small 

loans for short periods of time. 

4. How much would $5.00 a month, saved for twenty years, amount to 

if invested at 3 per cent, and the interest compounded semi-annually? 

5. If $50.00 was deposited in a savings bank, May 10, 1918, what would be 

the amount of the accumulated interest at 3 per cent, compounded 
semi-annually on January 1 and July 1 which would be due if the 
money was left in the bank until July 1, 1919? 

6. If you deposit in a savings bank, paying 4 per cent, interest, how 

much will you have in the bank Jan. 1, 1919, if you deposit the fol- 
lowing amounts: 

Jan. 1, 1918 $10.00 July 15, 1918 $15.00 

Feb. 15, 1918. 25.00 Sept. 10, 1918 20.00 

June 15, 1918 10.00 Dec. 10, 1918 40.00 

7. If you deposited the above amounts in such a bank and withdrew 

$15.00 March 15, 1918, how much would you have on hand Jan. 1, 
1919? 



328 THE BUSINESS OF THE HOUSEHOLD 

8. If the $15.00 was withdrawn Dec. 10, 1918, how much would you have 

on hand Jan. 1, 1919? 

9. What is the interest on $400.00 at 6 per cent, for one year and six 

months ? 

10. What is the interest on $500.00 at 6 per cent, for one year, three 

months and a half? 

11. If $500.00 was deposited in a savings bank at 3 per cent, compound 

interest July 1, 1917, what will be due the depositor if the money 
is not withdrawn until January 1, 1920 ( if the interest is compounded 
semi-annually on January 1 and July 1) ? 

12. Ascertain from a local bank, when interest would begin if money was 

deposited on the following dates: 
December 24th June 15th October 1st 

March 1st July 1st November 10th 

April 10th August 1st December 1st 

May 10th September 20th 

13. If the following amounts were deposited during the year, ascertain 

the minimum amount that would draw interest during the year. 

Deposits Withdrawals 

Jan. 1st $500.00 Feb. 1st $100.00 

April 1st 100.00 May 10th 100.00 

June 1st 150.00 Sept. 15th 150.00 

July 1st 50.00 Nov. 10th 50.00 

Sept. 1st 100.00 

Nov. 1st 50.00 

14. What would be the accumulated interest on the above account at the 

end of the year? 

15. Procure and explain a Liberty Bond; Thrift Stamps. 

THEMES FOR DEBATE 

Resolved : 

1. That savings should be the prime requisite of every family. 

2. That the wife is in a better position to save than is the husband. 

REFERENCES 

Brown, M. W., Development of Thrift. Macmillan. 
Farmer, L. C, A. B. C. of Home Saving. Harper & Bros. 



CHAPTER XXVI 
INSTITUTIONS FOR SAVINGS AND IN VESTMENTS 

Considerable has been said about the necessity for saving. 
It remains to describe the common institutions for savings and 
investments. 

Savings Banks; Savings banks are undoubtedly the most 
widely distributed and most highly developed institutions for 
facilitating and safe-guarding private funds which are accumulated 
for future use but which it is desired to have, readily available at 
all times as cash (see p. 32). In addition to other advantages, 
money placed in savings banks constantly increases by compound 
interest compiled carefully every three months. For most persons 
savings banks are the best u first aid" for saving money. Savings 
banks exist in this country in four forms, as follows: 

1. The mutual or trustee savings bank in New England and 
New York and to a less extent in certain other states, is a bank 
managed by a board of trustees for the benefit of depositors to 
whom its profits are distributed as dividends. It operates under 
very strict provisions of law which make safety of deposits the 
first consideration and profits are regarded as of secondary 
importance. Real estate mortgages are the favorite investments 
of the majority of mutual savings banks although government 
and other high class bonds are a close second. Of the approxi- 
mately $6,000,000,000 of their resources, over two-thirds are 
invested in these securities and the balance is held in cash or other 
securities which are always convertible into cash. 

2. Another form of savings bank is that which is organized 
in the same form as are commercial banks, being a private corpo- 
ration whose stockholders receive such dividends as result from 
the service rendered to depositors. 

3. The savings departments of national and state commercial 
banks and trust companies (in New York known as interest 
departments) are found in every state in the union and in prac- 
tically every locality therein. Their deposits probably total 
$9,000,000,000. Their highest development is in the state of 
California, where savings deposits are completely segregated from 

329 



330 THE BUSINESS OF THE HOUSEHOLD 

the commercial deposits and are required to be invested in the 
same class of securities of the highest grade as are legal in the 
Eastern mutual savings banks. This " segregated ' method is 
proposed as a legal standard for other states. 

4. U. S. Postal savings facilities are offered in about 6,000 
places. 

Savings accounts are usually operated in all types of banks 
on the pass book method, it being required that the passbook 
shall be presented whenever money is paid or withdrawn. The 
bank may require a notice of 30 or more days of intention to 
withdraw funds, this rule being for the benefit of depositors in 
times of stress when low-rate, high-grade securities held by the 
bank would be sacrificed unreasonably if dumped upon the market 
in order to secure cash to repay depositors on demand. It is not 
customary to allow checking facilities on savings accounts. 

The savings bank method of accumulation avoids the pitfalls 
and losses which are common to people of small means and little 
financial experience who attempt to make their own investments. 
The advantages of the bank method maybe summarized as: first, 
the depositors' money is being handled by experts, not by 
amateurs; second, any loss (and even keen investors make 
mistakes) is offset by the great bulk of successful investments, 
resulting in no loss of principal to depositors on noticeable differ- 
ence in the rate of interest earned by the institution; and, again, 
the deposit can be withdrawn in full in cash in practically every 
case, immediately whenever the depositor has need for it, the only 
exception being the possiblity of the 30 day notice. The individual 
who attempts to make his own more profitable investments, on 
the other hand, can not have proper knowledge of any security 
in the absence of special experience and training and every loss 
is borne entirely by himself and may be fatal to his whole accu- 
mulation. Furthermore, the individual must protect his securities 
against theft or destruction, and as every security is essentially 
a loan either the investor or someone on his behalf should con- 
stantly watch the property or activities of the borrower upon 
which repayment depends. Thus, if the investment is in a mort- 
gage he must know that repairs are made, fire insurance is main- 
tained, and all taxes are paid. If the borrower is a corporation, 
he must know that its management is capable at all times. 



INSTITUTIONS FOR SAVINGS AND INVESTMENTS 331 

Detailed information on these points can be obtained without 
expense from the savings bank of which the investor is a customer, 
but we again urge most insistently that this free advice of the 
banker shall be obtained before rather than after the investment 
is made, even if the investment is urged by your best friend. 

The dividends paid to depositors by mutual savings banks 
and the interest paid by the other banks may seem low. That 
should lead no one to jump at the bait of high interest rates 
which usually mean an increased degree of risk, either of interest, 
or of principal. Especially, do not confuse the bank rate with 
the alluring promise of salesmen who make a studied drive 
against savings deposits. Such salesmen obtain a commission on 
all sales, and the greater the risk for the investor as shown by 
the higher rate of interest which he is offered the greater the 
commission which the salesman receives. In short, the higher 
the rate of interest the greater is the risk to the depositor. 

Safety and high interest rates do not go together. The 
usual trick of showing what the original investment in any suc- 
cessful corporation would now be worth, does not express the 
whole truth. The original investment in every successful busi- 
ness is usually as great a speculation as in the far greater number 
of other promotions and enterprises which started with just as 
good chances of success but which were total failures. 

We are not to be understood as discouraging carefully con- 
sidered investments on which competent advice has been taken. 
When an account has reached an amount so that considerable 
reserve will not be needed for ordinary emergencies, the depositor 
should consult his banker regarding an investment of the type 
which, the bank itself uses; until his banker agrees, however, 
that a particular investment will be to his advantage, the best 
rule is to leave the work of safe-guarding and of investing to the 
banker. Risk no experiments, and you sleep well at nights. 
" Before you invest, ask your banker. 

Saving bank service reaches every person who is served by 
the United States mail. If there is no bank in your community, 
transact your business by mail with a banker known to you or 
properly recommended in any village or city which is convenient 
to your location. 

Postal Savings Systems— Any post-office may on public 
demand become a Postal Savings Bank to receive deposits on 



332 THE BUSINESS OF THE HOUSEHOLD 

which 2 per cent, interest is paid, and the credit of the United 
States is pledged to the payment of postal savings deposits. 

Accounts may be opened by an individual over 10 years of 
age, including married women. Deposits may start with a 10- 
cent "postal saving card' if desiied on which stamps may be 
affixed to accumulate up to $1. Deposits of one or more dollars, 
bear interest at 2 per cent, a year, not compounded. Deposits 
may not exceed $100 per month, or a total of $1000. Deposits 
of 820 or more, can be exchanged for U. S. Postal Bonds, bearing 
interest at 2\ per cent. A leaflet giving further information may 
be obtained from any postmaster. 

Building and Loan Associations — This is a popular 
institution for savings, the first example of which was formed at 
Birmingham, England, in 1795, and called a building club, and 
the first such organization in this country was formed in Phila- 
delphia in 1831. These associations soon spread throughout the 
country so that now there are few states that are not well repre- 
sented with many such organizations. 

In most, if not in all, states, Building and Loan Associations 
are subject to the inspection of State officials, and in some states 
they are placed under the state savings bank laws. One should 
always make earful inquiry in selecting an Association; while 
usually as safe as a bank, there have been exceptions, and careful 
local inquiry should be made. 

Purpose : (a) The prime purpose of all these associations is 
the cooperation of persons of moderate means who desire to 
borrow money for building purposes, and usually for homes. 

(6) Second, to provide a safe investment at an attractive rate 
of interest, for those who wish to invest their savings, so that 
those who do not wish to build may profit from the investment 
features offered and in turn contribute to the borrowing facilities 
of those who do wish to build. 

Plan : A member usually purchases one or more shares of 
stock, not over 30 or 40 as a maximum, upon which he makes an 
anitial payment of $1 for each share. Monthly payments are 
then made at the same rate of $1 per share until the total amount 
paid in, plus interest accrued, amounts to the par value of the 
share, which is usually $200. 

The stock of an association whose shares are $200 if paid for in 
monthly instalments of $1 may be expected to reach par in about 



INSTITUTIONS FOR SAVINGS AND INVESTMENTS 333 

ten or twelve years, or if the shares are $250 and they are payable 
in weekly instalments of 25 cents, they will muture about the same 
time. A small fine is sometimes charged for delayed payments. 

A member may be an investor, or an investor and borrower 
but no one can borrow without first becoming an investing member. 

Loan Features : At stated intervals, or whenever a given sum 
has been accumulated in the treasury through the payments made 
on shares, loans may be made to members, but if there is not a 
sufficient amount on hand to meet the needs cf all prospective bor- 
rowers, the funds are sometimes deposed of among the members 
by lot, or by auction, to the bidder or bidders offering the highest 
premium. This premium may be charged as a lump sum, or as 
an increase in the periodical payment. 

The amount borrowed by any one member cannot exceed the 
amount of his shares. If a member has subscribed for ten shares 
at $200 per share, the par value of his stock is $2000, which sum 
he may borrow from the association, under its rules, w T hen that 
sum is available. Interest is of course charged as upon any loan, 
and usually at 6 per cent. 

Security for the Loan : The borrower of $2000 holding that 
amount of shares in the association may only have paid in a few 
dollars on his shares; therefore it is necessary for the association 
to protect the loan which is usually done by taking a mortgage 
upon the land upon which a structure is to be built. 

Maturity of Loan: When the borrowing member has paid in 
the full amount of his stock, his loan is extinguished, because a suffi- 
cient sum has then been accumulated to equal the amount of 
the loan. 

Investment Features: Many make use of the Building and 
Loan system as a safe and profitable investment for small, periodi- 
cal savings. A certain amount of stock is subscribed for, say ? 
$1000, and then definite monthly payments prescribed by the 
association are paid in. When paid up the $1000 may be with- 
drawn or it may be left at interest. 

Withdrawal: A member may withdraw from an Association 
before the maturity of his shares and receive the amount of money 
paid in, plus interest at a lower rate than that for deposits 
allowed to run their full term. 

Credit Unions. — In some states, as in Massachusetts, the 
legislature has provided for the organization of what are known as 



334 THE BUSINESS OF THE HOUSEHOLD 

"Credit Unions " or cooperative credit associations, the purpose of 
which is to provide an opportunity whereby those of small means 
may borrow especially small sums, upon security or without se- 
curity other than the guaranty of one or more members of the 
Union. The first organization of this kind was formed in Ger- 
many in 1848, and from there it spread to Austria, Italy and the 
British possessions. In some places these unions either send 
the needs of agricultural communities or those of urban dwellers. 
In 1910 Massachusetts was the first American state to authorize 
such a Union. They now exist in New York, Wisconsin, Texas 
and North Carolina. 

The members fix the value of the membership shares in the 
Union, and allow them to be paid for at once or in such instal- 
ments as the member desires; whereas, in Building and Loan 
Associations and Cooperative Banks the amount of the monthly 
instalments is definitely fixed. The fundamental principles of the 
system, which by the Massachusetts law must govern the Credit 
Unions in that state, are stated officially as follows: 

"First: The association shall be organized on cooperative 
lines. As the members may be either borrowers or lenders, accord- 
ing to circumstances, its affairs must be conducted in such a way 
as to be fair and equitable to both classes. 

"Second: The association shall be cne of men, and not of 
shares. To this end each shareholder has one vote, irrespective 
of the number of shares he holds. Furthermore, the members set 
a limit on the number of shares or the amount of deposit which a 
member may have in the association, in order that no one person 
may have too dominating an influence or be able to damage the 
association by suddenly withdrawing large sums. 

"Third: Loans shall be made only for the purposes which 
promise to result in a saving or a profit to the borrower. Each 
applicant for a loan must state the object for which he desires to 
borrow, in order that the credit committee, which passes on all 
loans, may rigidly exclude thriftless and improvident borrowing. 

Fourth: As loans are made only to members, and as any 
member may become a borrower, care must be taken to admit to 
membership only men and women of honesty and industry. 

"Fifth: As personal knowledge of the character of the mem- 
bers is esssential, the membership in an association must be re- 



INSTITUTIONS FOR SAVINGS AND INVESTMENTS 335 

stricted to citizens of a small community, or of a small subdivision 
of a large city, or to the employees of a business concern. 

"Sixth: The par value of the shares should be small (the 
average being about $5), and shares should be payable in very 
small instalments. Loans of very small amounts should be made, 
and should be repayable in instalments. 

"Seventh: Character and industry is the basis of credit, and 
a loan may be made to a member who has not adaquate security 
to pledge for it, provided he can secure a reliable guaranty. 

"Eighth: Prompt payment of obligations is a fundamental 
requirement of these associations." 

Cooperative Banks — Some states provide for the organiza- 
tion of cooperative banks. The ultimate value of a share of stock 
in such a bank is fixed by law at $200, which must be paid for 
in monthly instalments of $1 each. Members may save money 
in such banks only by the purchase shares. These banks loan only 
on the security of shares so far paid up, not on personal security. 

Federal Farm Loans. — An Act of Congress approved July 
17, 1916, provides for the organization of twelve Federal Land 
Banks. Farmers desiring loans from such banks will be required 
to become members of local national farm-loan associations. 

The law also provides for the organization of joint-stock land 
banks which may lend money directly to farmers, but the organiza- 
tion of such banks depends entirely on private initiative and the 
investment of private capital. 

The Local National Farm-loan Association; — l n order 

to organize such an association, at least 10 prospective borrowers 
are necessary, and the aggregate amount they wish to borrow 
must not be less than $20,000. 

The shares are $5 each and every member must subscribe for 
shares equal to 5 per cent, of his proposed loan. 

The articles of association property executed must be forwarded 
to the nearest Federal Land Bank, and the local association must 
subscribe for shares of stock (value $5 per share) in the Federal 
Land Bank equal to the amount of its own shares of stock. 

The Federal Land Bank sends an appraiser to investigate the 
solvency and character of the applicants for loans. 

The local association does not lend money to farmers, but 
merely acts as an agent for the farmers and for the Federal Land 
Banks. It helps appraise land, it passes upon applicants for 
membership and performs much necessary clerical work. 



336 THE BUSINESS OF THE HOUSEHOLD 

The Federal Land Bank — Each of these twelve banks has a 
minimum capital of $750,000 which is raised by public subscription, 
or in part or in full subscribed to by the Federal Treasury. Loans to 
farmers are made through this bank. 

After such a bank receives $100,000 in subscriptions for its 
stock from local associations, a permanent board of directors of 
nine members is elected for each Bank, six from the local associa- 
tions and three appointed by the Federal Farm-loan board. Govern- 
ment funds may be deposited in these banks, not to exceed $6,000,000 
in the aggregate at any one time, at the discretion of the Secretary 
of the Treasury. 

Loans. — Loans run for not less than 5 years and not more than 
40 years. The rate of interest charged must not exceed 6 per cent., 
or more than 1 per cent, over the interest paid on bonds issued by 
the Federal Land Banks. 

JSTet profits earned by the Federal Land Banks, after paying 
expenses and providing for a required reserve, will be returned to 
the local national farm-loan associations, to be distributed among 
the borrowers after deducting therefrom the expenses and reserve 
requirements of the local associations. In this way the interest 
actually paid by the farmer is expected to be greatly reduced. 

Each loan must make provision for annual or semi-annual pay- 
ments on its principal, so that the debt will be entirely paid, includ- 
ing interest at the end of the period. At the end of the first five- 
year period, the borrower is given the option of paying any addi- 
tional sum on the principal in multiples of $25 on any interest date. 

Amortization. — This term is used to indicate the reduction or 
extinction of a debt at the end of a fixed period of time, through 
the periodical payments, at fixed intervals, of a certain sum repre- 
senting a part payment on principal together with accrued interest. 
At the end of an amortization period both principal and interest 
on a debt will have been paid in full. 

As an illustration, if a farmer borrows $1000 at 5 per cent, to be 
paid back in 20 annual instalments on this plan, he will make a pay- 
ment of $80.24 at the end of each year for 19 years, and $80.33 
for the twentieth year, when the debt will be cancelled. 

The following table shows the annual payments required on a 
loan of $1000 running for a 20-year period, with interest at 5, 5% 
and 6 per cent. For larger sums, multiples of $1000, the amounts 
are proportionately multiplied : 



INSTITUTIONS FOR SAVINGS AND INVESTMENTS 337 



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338 THE BUSINESS OF THE HOUSEHOLD 

Who May Borrow from Federal Land Banks. — Farmers' 
Bulletin 792 states that " In order to obtain a loan from a Federal 
Land Bank the borrower must agree to use the proceeds of the loan 
for one or more of certain objects specified in the act, namely, for 
the purchase of land for agricultural use ; for equipment, fertilizers, 
and livestock for the land mortgaged; for buildings and other 
permanent improvements on said land ; or, with certain limitations, 
for the payment of indebtedness. The borrower must furnish as 
security a first mortgage on farm land. The amount of the loan 
must not be less than $100 nor more than $10,000. The loan must 
not exceed 50 per cent, of the appraised value of the farm land and 
20 per cent, of the value of the permanent improvements adequately 
insured. The borrower must be engaged, or about to be engaged, 
in the cultivation of the farm mortgaged. He will also be re- 
quired, ordinarily, to become a member of a local national farm- 
loan association." 

Investment Features Offered by Federal Land Banks. — -The 
same Bulletin explains the investment features of the land banks 
as follows: 

In place of selling the actual mortgages, the Federal Land 
Banks are authorized to issue bonds secured by an assignment and 
pledge of the mortgages, in denominations of $25, $50, $100, $500, 
and $1000. Because of the careful safeguards applied to these 
bonds they are expected to prove attractive to a large number of 
investors who desire to purchase reliable and convenient securities. 
It is believed that the bonds of small denominations will encourage 
saving and investment. They are exempt from all forms of taxation. 

Investment Value of Annual Payments. — Circular No. 60, 
issued by the Office of the Secretary of Agriculture, is especially 
valuable in computing the annual payments that must be made to 
reduce and extinguish the principal and interest of a debt during a 
term of years, explained in the circular mentioned as follows : 

" This figure is found by dividing the amount of the loan by 
the present value (at compound interest) of a payment of one dollar 
at the end of each year for the term of the loan. Thus, the present 
value of a payment of $1 at the end of each year for 20 years, 
reckoned at 5 per cent, compound interest, is $12.46221; dividing 
$1000 by this figure, we get $80.24 as the number of dollars that 
must be paid each year in order to cancel a loan of $1000, with 
interest at 5 per cent, in 20 years. In case of semi-annual payments 



INSTITUTIONS FOR SAVINGS AND INVESTMENTS 339 



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INSTITUTIONS FOR SAVINGS AND INVESTMENTS 341 

the interest periods are counted instead of the years, and a rate 
equal to one-half the annual rate is used." 

The Morris plan banks were originated and started by A. J. 
Morris, an attorney, in Norfolk, Ya., about 1912, for the purpose 
of loaning money to wage-earners and those unable to borrow at 
the larger commercial banks. The endorsement of two responsible 
parties is required on a note. Money is loaned at 6 per cent. 
Eepayments on notes are made in small weekly sums, according to 
the amount borrowed; for instance, $1 per week on a $50 loan 
and $2 per week on a $100 loan. In this way the loan may be made 
for a longer period than that required by other banks and repay- 
ments in small amounts are accepted weekly. 

Money may be deposited in amounts of $50 and multiples thereof, 
and certificates are issued for the deposits drawing 5 per cent, 
interest. The banks are generally well financed. 

QUESTIONS 

1. Name the various types of institutions for saving in this country. 

2. How many of these institutions are represented in your community? 

3. What is the minimum and maximum sum that may be deposited by an 

individual in the Postal Savings Bank? 

4. Mr. Jones transferred his postal savings certificate to the Green Grocer 

Company in payment of his bill, but the latter refused to accept it, 
as they claimed it was not "legal tender" and not transferable. Mr. 
Jones claimed it was transferable. Who was right? 

5. W T hat interest is allowed on Postal Savings Accounts ? 

6. What interest is allowed on Postal Savings Bonds? 

7. Are Postal Savings Bonds subject to taxation? 

8. Describe the purpose and plan of operation of Building and Loan Asso- 

ciations; of Credit Unions, of Co-operative Banks. 

9. What is the purpose or object of the Federal Land Banks? 

10. How many Federal Land Banks are there in the United States? 

11. What is their relation to the National Farm-Loan Associations? 

12. What is meant by "amortization"? 

13. What are the investment features offered by Federal Land-Banks? 

14. What interest is charged on loans made to farmers through National 

Farm-Loan Associations ? 

REFERENCES 

Credit Unions, Bank Commissioner, Boston, Mass. 

Co-operative Banks, Bank Commissioner, Boston, Mass. 

Ford, J., Co-operation in New England, Urban and Rural. Survey 

Associates, New York. 
Ham and Robinson, The Credit Union Primer. Russell Sage Foundation, 

New York. 
Farmers' Bulletin 593, How to Use Farm Credit. Dept. of Agriculture. 
Thompson, How the Federal Farm Loan Act Benefits the Farmer, 

Farmers' Bulletin 792, Dept. of Agriculture. 



CHAPTER XXVII 

INVESTMENTS 

As suggested in another chapter, persons without business ex- 
perience should not invest savings or other funds without the 
advice of a competent and honest banker, broker or lawyer. This, 
however, should not prevent one from learning all he can pertaining 
to the various forms of investment, a few of which are mentioned 
in this chapter. 

In the investment of money, one good rule to remember is that 
generally speaking, the lower the rate of interest the safer will be 
the investment. The more risk involved in an investment, the 
higher will be the interest offered. As a rule, one must choose 
either one or the other— safety of principal with smaller return on it, 
or a greater risk for the sake of a large return. 

Before deciding upon assuming a larger risk for a greater return, 
review carefully the advantages offered by the following institutions 
for saving: (a) Savings Banks, (&) Cooperative Banks, (c) Credit 
Unions, (d) Postal Savings Banks, (e) Federal Land Banks, (/) 
Building and Loan Associations (Chapter XXVI). 

Personal Loans. — In loaning money to individuals for short 
terms, such as thirty, sixty, ninety or one hundred and twenty 
days, commercial banks charge six per cent, interest. If a person 
offers to pay another eight or ten per cent, interest for such a loan, 
the chances are that his credit at the bank is not good, because if 
such were the case, that person would borrow the money from the 
bank at the lower rate of interest. In making such loans, one 
should be careful to learn the character and financial standing of 
the borrower. If one has a bank account such information can 
probably be procured for one by the banker. 

Another point to remember is that if such a loan is to be made, 
before advancing the money, all of the conditions that might be 
required by the bank should be carried out. If the bank would 
require an endorser on the note, or security, the individual loaning 
the money should demand the same protection. 

Promissory Notes. — A promissory note is exactly what its 
342 



INVESTMENTS 343 

name implies, a written promise to pay. Following is a sample 
of such a note : 

$100 Chicago, III., Oct. 1, 1918. 

Sixty days after date, I promise to pay to John Jones . . . 

or order, One Hundred and No-100 

Dollars, For value received, with interest at 6 per cent, per annum, 
from date, payable at the First National Bank, Chicago, Illinois. 

William Smith. 

The principal and vital parts of such a note are the following : 
(a) "I promise to pay." (b) "Interest at 6 per cent" (c) The 
date, (d) Signature, (e) "For value received." (/) "Per an- 
num " from date (or maturity), (g) Date of maturity. 

The note must express the promise to pay, and it must show that 
the promise to pay is in exchange for " value received." The date, 
the date of maturity and the signature, of course, are necessary. 
Where the note is to be paid, may or may not be expressed, as 
desired. 

If the words " per annum " follow the promise to pay interest, 
this allows the holder of the note, if the principal is not paid within 
a year, to add the accumulated interest to the principal at the end 
of that period and to charge the agreed rate of interest upon both 
the unpaid principal and interest. 

In loaning money on promissory notes, banks usually deduct the 
interest on the loan from the principal, in which event the note 
would read "interest at 6 per cent, per annum from maturity." 
As an illustration, if $200 is borrowed at 6 per cent, for sixty days, 
the interest would be $2 for that period and this amount would be 
retained by the bank, and the balance $198 paid to the borrower. 
If the note is paid when due, there will be no further interest; but 
if not, interest will have to be paid from the date of maturity until 
the note is paid. 

If interest is not paid in advance, then the note would read, 
" interest at 6 per cent, per annum from date." 

A Demand Note. — This form of note may read the same as any 
promissory note with the exception that instead of inserting a time 
of payment, the words " On demand " are used, as " On demand, I 
promise to pay, etc." 

This form of note allows the borrower to pay the amount due 



344 THE BUSINESS OF THE HOUSEHOLD 

whenever ready, and it also allows the lender to " demand " the 
payment of the note with any accrued interest at any time. 

A Judgment Note. — A judgment note is the same as a promis- 
sory note, with the exception that it contains a paragraph " con- 
fessing judgment" on the part of the borrower in the event the 
note is not paid when due, and sometimes agreeing to the payment 
of an attorney's fee in such an event. Such a " confession of judg- 
ment " avoids certain court proceedings on the part of the lender, 
and judgment can be entered on the county records against any 
property possessed or to be possessed in the county by the borrower 
within the period fixed by the statute of limitation. 

Mortgage Notes. — Strictly speaking, a mortgage note is any 
note secured by a mortgage, chattel or real estate, but in this con- 
nection reference is meant to a note secured by a real estate 
mortgage. 

Such notes, instead of running for a short period, usually 
run for from three to five years. Local and national financial con- 
ditions govern the rate of interest, as do sometimes the size of the 
loan and its desirability as an investment, running from 5 per cent., 
5y 2 per cent, and 6 per cent, on city buildings to from 6 per cent, 
to 10 per cent, on farm property. 

It is not safe for the ordinary individual to pass upon such 
loans without the assistance and advice of both a banker and an 
attorney ; the banker to pass upon the safety of the investment and 
the value of the security offered, and the lawyer to pass upon the 
title and the legality of the mortgage. 

In making such mortgages the following points should be 
observed : 

(a) See that title to the property is perfect. 

(b) Eequire abstract of title, guarantee policy or Torrens 
Kegistration. (See Chapter XXXI, p. 394.) 

(c) Have attorney pass upon both. 

(d) Have a banker pass upon the desirability of the investment. 

(e) See that the loan does not exceed 60 per cent, of the value 
of the security. 

(/) Make provisions for prepayment of part of the loan before 
the full period of maturity expires, so as to reduce the risk. 

(g) See that buildings are properly insured, and kept insured 
during life of the mortgage, and that the policy is payable to the 
mortgagee. 



INVESTMENTS 345 

For titles, foreclosure or mortgages, second mortgages, and other 
aspects of the real estate problem, see Chapter XXXI, p. 393. 

Bonds. — Cities, townships, counties, states and the Federal 
Government, railroads and other corporations requiring money that 
cannot be raised in other ways, issue bonds which are promises to 
pay certain sums of money at "definite times, with interest at a 
certain rate payable at regular intervals. 

A city may desire to build waterworks, or a sewer system, or a 
railroad may wish to build a branch line, and in such cases a bond 
issue is made and offered for sale, usually in denominations of 
$500- and $1000. 

In the case of a governmental corporation such as a city or 
county, both the credit and the property of the unit of government 
issuing the bonds constitute the security offered the investor. In 
the case of private corporations, as a railroad, such bonds are usually 
protected by a mortgage on all of the property of the corporation. 
If, however, a million-dollar mortgage were issued on the property 
of a corporation, few persons would be able or willing to invest that 
amount of money, and therefore the million dollars is divided up 
into bonds of smaller denominations which may be subscribed to in 
small amounts such as $500 or $1000 as stated. 

At " Par Value." — The amount written on the face of the bond 
is the par value of the bond, as this is the amount that must be 
paid at maturity by the corporation issuing the same to the person 
then holding the bond. For various reasons, a certain kind of 
bond may not be in demand by investors, in which case the cor- 
poration issuing the same, or those having invested in such bonds 
and desiring to sell them, may have to offer them at less than par 
in order to find a buyer. Thus a bond with $100 face value may be 
bought and sold at $97, or $3 below par; but this would not relieve 
the corporation from being compelled to pay the full or face value of 
$100 at maturity. 

At a " Premium." — Sometimes the bonds of a corporation may 
be so desirable as an investment that purchasers bid against each 
other in trying to buy them, with ilie result that the price goes to 
a "premium," or above par. For instance, a $100 bond may be 
bought and sold at $102; that is, at a premium of $2. But at 
maturity such a bond calls only for a $100 payment to the holder. 

The investor may ask " Why should I have to pay $1032.50 for 
a 20-year 5 per cent, bond of a certain railroad when I shall only 



346 THE BUSINESS OF THE HOUSEHOLD 

get $1000 on the bond at maturity ? " The reason is that persons 
are willing to pay the premium in order to get so safe an investment 
paying a rate of interest higher than usual bank interest, and run- 
ning 20 years before the bond matures. Such a bond pays $50 a 
year interest, whereas a bank would only pay $30 on a $1000. The 
$32.50 premium paid only amounts to $1.62 per year, for the twenty 
years, so deducting this from the $50 interest leaves a net yield 
of $48.38 per year against perhaps $30 interest from a bank. The 
$32.50 premium, or $1.62 per year, is merely a fee paid so that you 
will get $50 a year interest for your money instead of only $30. 

Below Par. — Certain bonds may be bought below par, either 
because the security is not of the best, although the rate of interest " 
is high; or perhaps because the rate of interest offered is so low 
that the bond is not attractive because of low returns. Bond prices 
also vary with conditions of the money market. 

The actual return on money investment in a bond, it is to be 
noted, is determined not only by the rate of interest paid on the 
face of the bond, but by the price paid in purchasing the bond ; for 
example, a bond paying 6 per cent, or $6 a year and costing $120, 
really pays only 5 per cent, opi the investment ($6 is 5 per cent, 
of $120) ; and a bond paying 4 per cent, or $4 and costing $80 
really pays 5 per cent, on the investment ($4 is 5 per cent, of $80). 

Besides government and municipal bonds, there are railroad 
bonds and bonds of certain industrial companies which are good in- 
vestments. A banker is in a position to give reliable advice or to 
obtain it. Besides security of principal, one will wish to consider 
size and certainty of interest payment; and the probable stability 
of market value of the bond, in case one should later wish to sell it. 
Bonds are transferable and negotiable, so that one may sell them 
if there is a market for them, or borrow upon them by placing them 
with a bank as security. 

Banker's Partial Payment Bonds. — In the chapter on " Sav- 
ings and Methods in Saving" is given a description of Banker's 
Partial Payment Bonds, a method recently devised for saving a 
certain amount monthly. During a period of years this amount, 
plus the interest allowed and a bonus paid by the bank, will at the 
expiration of the period agreed upon equal the amount of the bond 
purchased. 

Stocks. — Stocks are merely shares of ownership in a company 
and its property, upon which is paid interest in the form of divi- 



INVESTMENTS 347 

dends, if the company is doing a profitable business. The dividends 
depend entirely upon the profits earned by the company. 

A company incorporated for $100,000 may decide to issue its 
shares or stock in denominations of $100, in which case 1000 shares 
of stock will be offered for sale, and the proceeds of the sale will 
be used to start the company in business. If the company earns 
enough money to pay all expenses for the year, besides a net profit 
of $5000, the latter amount represents the earnings, and the com- 
pany can, if it wish, declare that amount of dividends to be 
divided among the stockholders. With 1000 shares issued this 
would mean a dividend of $5 for each $100 worth of stock issued, 
or a 5 per cent, dividend. 

Instead of paying a dividend, however, the company may, if it 
elects, place the $5000 or any part of it, in a cc sinking fund " or a 
fund, to which will be added from time to time, more money for 
some special purpose, such as the enlargement of the plant, or for 
other use, or it may hold the $5000 in a reserve fund for possible 
contingencies. 

The value of stocks and their earning power fluctuate. Much 
depends upon the management of the company, and everything 
depends upon its success. Stocks of companies that are sound 
and that offer unusual inducements to the purchaser, rarely reach 
the general public. 

Preferred and Common. — Stocks are of two kinds : preferred, 
or those the earnings of which, if there are any, must first be 
divided, the dividend being at a stated percentage, 6 per cent, or 8 
per cent., as the case may be; and common stock, or that which 
receives a share of the earnings after preferred dividends are paid. 
There is no limit to the dividend which may be paid on common 
stock. Preferred stock gives a more assured income but a limited 
one; common stock is less certain, but may give a much larger 
payment. 

The distinctions between bonds and stocks which are of im- 
portance to investors should be grasped. Bonds, which are mort- 
gages, are safer as regards principal and income; their principal 
value fluctuates in the market, but at maturity is worth a definite 
par value; the interest on the bond is a definite guaranteed rate; 
while interest and principal are virtually guaranteed by the pledge 
of the property " bonded/' 

As stocks are shares of ownership, their principal value varies 



348 THE BUSINESS OF THE HOUSEHOLD 

with the market and there is no ultimate par value ; their dividend 
rates also are uncertain — while preferred stock if it pays dividends 
pays a certain rate, there is no guarantee that either it or common 
stock will pay dividends. Stocks are speculative and uncertain as 
to principal value and as to income. They are not suitable forms 
of investment for the person of small means, but only for those 
who can afford to lose what is put into them. 

Caution. — -A person should be careful about investing in any 
kind of stocks, especially those that are highly advertised, and 
those that offer glowing promises and great inducements, such as 
mining stock. Do not attempt to go into any business in which 
you have not been trained, and do not invest in any company, in 
which you do not have access to all the facts. Do not speculate in 
stocks. Do not buy of agents who solicit — good stocks are never 
sold in that way. Do not take chances with your savings! For the 
average person, bonds should be the form of investment rather than 
stocks; the average person should not buy stocks unless he can 
afford to lose his income and often to risk his principal. 

Real Estate Investment. — Aside from the various projects 
offered by legitimate institutions for savings, perhaps the safest 
and most profitable form of investment that may be made by the 
average individual is the buying and selling of real estate, and in 
renting the same. 

With proper guidance from a reputable banker and a lawyer, 
and with a fair knowledge of real estate values in a community, 
one may with a small capital, purchase a residence or a piece of 
business property and from the rent be able to pay operating ex- 
penses and at the same time earn a good rate of interest on the 
money invested. In doing this, however, one should stick to the 
community in which one lives. Do not be beguiled by advertisements 
of city subdivisions elsewhere being opened up by speculators. 
One must really have lived in a community for a number of years 
to become thoroughly conversant with real estate values. Real 
estate and its purchase is discussed in Chapter XXXI, but successful 
investment turns largely on knowledge of the local details which 
in every community affect the value of real estate. 

In Conclusion. — In making any kind of investment, be sure 
that you know what you are doing, and even though you are satis- 
fied with your knowledge of conditions and with your judgment, 
before taking action refer the entire matter either to a competent 
banker or to a lawyer. 



INVESTMENTS 349 

QUESTIONS 

1. Explain the meaning of a promissory note? 

2. If a note reads "interest after maturity" when is the interest to be 

paid? 

3. Is a note legal without the words "value received"? 

4. What is a judgment note? 

5. A demand note? 

6. What is meant by stocks, or shares? 

7. What is a bond? 

8. In loaning money on real estate security what are the principal factors 

to be considered? 

9. Why should one consult a banker in loaning money? 

10. A lawyer? 

11. What is meant by par value? 

12. By the "premium" on a bond? 

13. Why may bonds sell for less than par? 

14. For more than par? 

15. What is a "dividend"? 

16. Which is the better investment, a bond or a share of stock? Why? 

PROBLEMS AND DEMONSTRATIONS 

1. Secure if possible, and paste in a note book, a blank Promissory Note; 

a Demand Note; a Judgment Note. 

2. Write out a promissory note payable to John Doe for $275.00 due in 

sixty days with interest at 6 per cent, per annum. 

3. If possible secure a blank bond and explain its purpose. 

4. Jones paid $500.00 for a bond which was par value on the first of May, 

1918. It drew interest at 4 per cent, from that date. Jones sold the 
bond May 1, 1919, at 98. How much did he make? 

5. What per cent, of interest did it net him? 

REFERENCES 

Marcosson, I. F., How to Invest Your Savings. Henry Altemus Co. 
Mead, E. S., The Careful Investor. J. B. Lippincott Company. 



CHAPTEK XXVIII 
OLD AGE 

Special provision for old age is seldom thought of apart from 
a desire to save and accumulate a competency, but old age is a 
subject that should be considered independently of the question of 
saving. 

Three Vital Factors in the Budget. — There are three factors, 
already mentioned and discussed, that deserve especial considera- 
tion in every family. They are " savings, life insurance and the pur- 
chase of a home." These factors are again mentioned that they may 
not be confused with the subject of preparation for old age. 

Every couple starting out in life should, at once, plan on 
eventually owning their own home, whether it be a house or an 
apartment. It will only be a matter of years before that home will 
be paid for, and then, if adversity comes, the insistent monthly 
demand for rent will not be heard at their door. 

The next step should be to provide a life insurance policy, not 
for any investment purpose, but simply for the sake of protection. 
This policy should preferably be a limited payment policy on which 
all payments are completed before old age comes on. Life insur- 
ance does not mean merely protection for some loved one; it also 
means protection for the holder of the policy. When old age does 
come, and when adversity demands that children or even strangers 
come to the rescue, such assistance need not be accepted as charity, 
as the possession of a life insurance policy means that children or 
others who assume the care of the aged may be fully recompensed 
when death matures the policy. 

The third step is the determination to save something every week 
or month from the pay-envelope; to invest that money as it accu- 
mulates and to add the interest that it earns to the principal, in 
order that a competency may be accumulated. 

Some may think that this is sufficient protection against old age, 
but is it? 

Another Vital Factor Necessary. — If one could be assured 
that one's savings would continue to accumulate, and that they 
would always remain invested wisely and safely, perhaps that might 
350 



OLD AGE 351 

be all that would be necessary to safeguard against the storms 
of adversity, but the great danger comes from the fact that it is 
natural to make our savings earn more money. We have a right 
to save and a duty to invest our savings, but all investments are 
subject to adverse influences. Judgment may be at fault. Care- 
lessness of self or others may cause disaster. In making investments 
one generally takes certain speculative chances and the idea as to 
what constitutes a margin of safety differs. The savings of a life 
time may be easily swept away over night. How then may this 
be guarded against ? In two ways : 

First: By deciding that a certain percentage of the sum laid 
aside for saving shall be considered as an apportionment for old 
age. If as an illustration, twenty-five dollars a month is to be 
the amount laid aside for saving, let five dollars of it go into an 
old-age fund. Twenty dollars may be invested with safety as the 
first thought, but also with the idea of making it earn as much 
as possible. This of course entails much more risk than it would 
if it were deposited in a Savings Bank. The five dollars in the 
old-age fund, however, should not be risked in any way or be 
subjected to speculation or' hazard of any kind. It should be 
deposited in a Savings Bank and be allowed to draw the customary 
three per cent, interest, compounding the interest as soon as it 
accumulates sufficiently. It may be invested in Government Bonds, 
but it should not be invested in real estate, in loans, mortgages or 
in any form that possibly could cause loss. 

Second : Eegardless of the amount saved, the old-age fund may 
simply represent another apportionment to be made in the budget. 
After the savings apportionment has been made, five dollars a 
month or as much more as possible should be apportioned to this 
fund. In the course of twenty to forty years, even $5 a month at 
compound interest amounts to a considerable sum. This fund should 
never be used for speculative purposes, and it should not be used 
for anything involving any kind of risk. The sole purpose of such 
a fund is to divorce the money intended for protection against age 
from other savings subject to investments with their necessary 
risks. 

Some may say that endowment insurance policies will provide 
for just such exigencies. Perhaps they will, but they entail the 
expenditure of more money per year than thousands of families can 
make, and they also are subject to the inability of the holder to con- 



352 THE BUSINESS OF THE HOUSEHOLD 

tinue the payments of the necessary premiums. As intimated else- 
where, it is better to divorce the investment feature from the entire 
question of insurance. 

The Relation of Children to Parents. — It is true that children 
may marry, and that in such an event, they will have their own 
financial burdens to meet, but this fact should not absolve them 
from all obligations to the parents who have given the best years 
of their lives to their care and education. 

So long as a parent is dependent, that dependency should be 
placed upon the children, if there are any living. In order that the 
parent may not be an incubus upon children, a better method of 
meeting the old-age problem should be found than that which 
commonly obtains. 

In the first place, from early childhood, children should be 
taught the nature of their obligations to their parents. As soon 
as they are old enough to understand this problem they should aid 
the parents in trying to solve it, not merely for the benefit of the 
parents but for the good of the children themselves. 

As an illustration, the old saying that " There is no roof large 
enough to cover two families," is in intent a pretty wise old saw. 
Children who marry should not be encumbered with the care of 
parents under the same roof. They have a right to their privacy 
and parents are also entitled to live their lives alone. Normally 
one of the greatest mistakes parents can make is to live with a mar- 
ried daughter or son. Volumes could be written upon this subject 
but it is not necessary. The question is how to prevent such a 
necessity. 

In the first place it should be understood between parents and 
children, that the death of the father means that the bulk of the 
property accumulated goes to the wife, or vice versa. Also that 
the death of both parents means that the property is to be divided 
equally between the surviving children, or that, if the care of the 
parent or parents falls upon one of the children, that one shall be 
reimbursed for such care out of the estate first, and that the remain- 
ing portion is to be divided equally between the surviving children. 
What the children do for the parent or parents then does not become 
a matter of charity or an obligation on anyone's part. If there 
is property such obligations will ultimately be repaid. 

As soon as children are able to work, or when they do become 
sufficiently independent economically, if they continue to live 



OLD AGE 353 

under the parental roof, they should pay a reasonable sum for board 
to the parents. This sum may be applied to the old-age fund, or if 
it is not needed it may be invested and returned to the children 
at marriage or later in life. 

Aside from the above, children when economically independent, 
whether living with parents or not, should contribute a minimum 
sum weekly or monthly to this old-age fund. A bond of a certain 
amount may be purchased by each child and paid for in monthly 
instalments. Bonds may be had in denominations of one, two hun- 
dred and fifty, five hundred and a thousand dollars each. The 
small monthly payment would hardly be felt by most young people 
earning a fair salary. When they marry and their obligations 
become heavier the payment may be reduced and when a sufficient 
amount has been accumulated with which to protect the parents 
and make them economically independent the payments may cease 
entirely. 

Where the united efforts of parents and children have saved 
a generous amount, the interest alone may be sufficient, and per- 
haps the capital may never be touched. In the latter case, the 
principal should be returned to the children according to their 
apportionments at the death of the parents. 

In any event, and under all circumstances, the child that con- 
tributes to the support of parents should be reimbursed out of the 
parents' estate, before a general equal division is made among the 
surviving children. 

If parents have no property and nothing but an insurance policy 
to represent their savings, they have a right to expect one or more 
of their children to keep up the premiums (if it is not a paid-up 
policy), and also to care for them. The amount so paid and con* 
tributed may be deducted from the policy at maturity, or it may 
be understood that the full amount of the policy goes to the one 
who assumes the responsibility for the old folks' care. If some 
of these suggestions were put into effect, there would be happier 
families, fewer old folks' homes, and little destitution among the 
aged. 

Possessions of the Aged. — One of the very worst experiments 
aged persons or those advanced in years can make, is to deed their 
real estate and convey their personal property to children. While 
it may be fully understood that their property is to go to the chil- 
dren at the death of the parents, no such disposition of either real 
23 



354 THE BUSINESS OF THE HOUSEHOLD 

or personal property should be made during the life of the parents. 
No matter how loving and kind children may be, the human equation 
must be considered. The old father or mother with a few thousand 
dollars at personal disposal is always a little bit more welcome at 
the fireside of the favorite child than the parent or parents who sit 
there because they have no other place to go, and no choice to make. 

A young man is anxious to go into business. He is very sure 
of himself and his prospects, and his glowing eloquence easily moves 
the fond ear of the aged mother and father. Their little store is soon 
staked on the enterprise, but the son's judgment is not what it 
should be and it is soon discovered that the experiment has not been 
a success, and father and mother are now entirely dependent upon 
the care of the children. It is too late for them to begin all over 
again. 

It is a pretty safe rule not to do business with friends and rela- 
tives. Old people should firmly make up their minds to hold the 
bulk of their possessions in their own name so* long as they live. 
They should leave the matter of investments entirely in the hands 
of a reliable banker, and no financial move of any importance should 
be made without his advice and consent, and if it is made it should 
be supervised and put into execution by such a banker. 

Not Entirely an Individual Problem. — Provision for old age, 
while directly dependent upon the family, needs to be supplemented 
by aid from the employer and from the state. 

The citizen is a ward of the state, and the state requires for 
its own protection that its citizens receive at least an elementary 
education, and so we have our compulsory school laws. As a further 
protection against becoming a public charge in case of misfortune 
and extreme poverty, the same line of reasoning may be extended, 
and the state be urged to provide against such contingencies by a 
government pension fund. 

On the other hand, this burden should not be thrown entirely 
upon the government any more than upon the individual. The 
employer should be expected to contribute to such a pension fund. 
Many thousands of persons devote the best years of their lives to the 
interest of their employers. They may have specialized in some 
form of work that unfits them for other lines of endeavor, and 
through years of service they have contributed to the building up 
and growth of the employees business. Can such loyal and con- 
tinuous service on the part of employees ever be compensated for 
in the form of a wage only ? 



OLD AGE 355 

Many a man after twenty to thirty years of faithful service for 
aii employer has been dropped out of service in order to give place 
to a younger man. Unable to secure work in his special line, and 
too old to learn a new trade, he becomes a dependent either upon 
society or relatives, unless a competency has been acquired. Eco- 
nomic conditions often make it impossible for men of families to 
save, and it is not always their fault that such conditions find them 
without an old-age fund to protect them in later life. 

It is such conditions that to-day demand that the employer con- 
tribute his share to a pension fund for employees. 

Workmen's Compensation and Pension Funds. — There is 
no one plan that has been adopted as a standard by American 
employers to take care of this situation. Many employers have 
adopted a pension system. Such systems usually require that the 
employees deposit with the company a certain per cent, of their 
wages to go into the pension fund for their own protection, and for 
every dollar so saved, the employer agrees to deposit a certain 
amount for the same purpose. 

Other forms of compensation for workmen are the profit sharing 
plans that have been adopted by miany of the larger business con- 
cerns. Over 200 such plans are now in force in this country. They 
may be classified into three general groups as follows : 

1. A distribution of a specific proportion of the net profits 
fixed in advance. 

2. Gratuities made by employers from time to time. 

3. Opportunities given employees to purchase stock in the con- 
cern under specially favorable conditions, not available to the 
general public. 

Profit sharing in this country was first tried out in 1867. The 
company first introducing it paid their employees 25 per cent, of 
the net profits. Some companies that adopted this system as early 
as 1879 still continue it, but many have abandoned the plan as a 
failure. 

Many employers who have tried it think that it promotes con- 
tinuous service, more regular attendance, a better spirit of co- 
operation and that it reduces the cost of production. Others are 
not agreed as to its value. Strange to say most objectors to profit 
sharing come from the ranks of unionized labor, who evidently 
are suspicious of the motives of employers who adopt it, and who 
fear it, perhaps as a rival of Unionism. 



356 THE BUSINESS OF THE HOUSEHOLD 

Government Pension Systems. — As early as 1772 provision 
for annuities for the aged poor was proposed in England. What 
some nations have done in the form of Government pensions is 
shown as follows: 

Germany: In 1891 Germany adopted a compulsory and con- 
tributory system of pensions. The employee and the employer are 
compelled to contribute a certain amount, to which the government 
adds its share. 

Denmark: In this country, the pension fund is supported by 
both local and national taxes, and both sexes over 60 years of age 
are provided for, supplementing any private help that may be given 
to the individual. 

New Zealand : This country pensions the deserving poor over 65 
years of age. Assistance from other sources and private property 
owned by the individual is taken into consideration in awarding the 
amount of the pension. A similar plan is in operation in Victoria, 
Australia. 

Great Britain : The pension system of this country is non- 
contributory ; that is, it is not dependent upon contributions from 
the individual or employer. Those over 70 years of age, whose 
income does not exceed $105 per year, are paid $1.25 a week, and 
a graduated scale of benefits is applied to those having incomes above 
$157.50 per year. This system applies also to paupers in work- 
houses. 

France: This is a contributory system, and it provides pen- 
sions for all those above 65 years of age whose income is under 
$600 per year, the highest pension amounting to about $82 per year. 

United States : No such system exists in this country as yet, 
but it is only a matter of time before some provision must be 
made for the pension of the aged indigent. Probably such a system 
should provide for compulsory insurance against old age on the 
part of the individual, and contributory insurance on the part of 
the employer, supplemented by governmental aid. 

Summary. — If some family plan for protection against old 
age, such as that outlined earlier in the chapter, were put into 
effect during youth or even in middle age, and if children, before 
their responsibilities become too great assume their share in build- 
ing up an old-age fund for the parents, they will come to look 
upon it as an investment and not a hardship, an act of charity or a 
duty. What they contribute added to what the parents already may 



OLD AGE 357 

have accumulated, together with interest, should prove an incentive 
to any right-thinking child. With some such plan in effect, parents 
may live their own lives in their own way until the end. It will 
not be necessary for them to break up their home in order to live with 
one of the -children, and with a compulsory system of contributory 
insurance on the part of the employer and federal government in 
effect, in case of actual necessity the questions of support during old 
age will be answered. 

This is a problem that has not yet been solved or placed upon 
the right economic basis. 

QUESTIONS 

1. What three vital items in the Family Budget relate especially to the 

subject of old age? 

2. Why should there be an "old age" fund, aside from and independent of 

other provisions made for acquiring a competency? 

3. Are children under moral obligations to support parents unable to care 

for themselves? 

4. Should parents live with a married child ? If not, why not ? 

5. Should parents transfer their property to children as an offset to 

their own support for the rest of their lives? 

6. Should children who are earning and living at home contribute to the 

maintenance of the home in the way of board? 

7. If so, how should the amount of board be determined? 

8. If a parent has no property other than a life insurance policy, should 

the children be asked to meet the premiums on the same. If so, 
why? 

9. In what way should children help to make provision for the old age of 

parents ? 

10. Can this be done in a manner that will ultimately return to the children 

the expenditures made in behalf of the parents ? 

11. Should parents loan their earnings to children for any purpose? 

12. How may old people be safeguarded against making unwise investments ? 

13. What is meant by "contributory pension systems" ? 

14. By compulsory old age pensions? 

15. Can you name any business or industrial concern that supports a pen- 

sion system? If so, give the details of the plan. 

16. Can you name any concern supporting a profit-sharing plan? If so, 

give details. 

REFERENCES 

Seager, H., Social Insurance. Macmillan. 

Squier, L. W., Old Age Dependency in the United States. Macmillan 



CHAPTER XXIX 

HIGHER LIFE AND CULTURAL WANTS IN THE 
FAMILY BUDGET 

Economists find that from 10 to 30 per cent, of the income goes 
for the expenditures for "Higher Life," a smaller percentage with 
smaller incomes, and as the income grows the percentage increases. 
This allowance is for education, culture, recreation, savings, medical 
and miscellaneous personal expenditures. Two of the most import- 
ant of these expenditures are those for education and recreation, and 
they will be made the topics for this chapter. 

Little attention has been given to the expenses involved in the 
education of children when the subject of family budgets are under 
consideration, and yet there are many factors that add to the family 
expenditures in this particular that might be eliminated. The sub- 
ject is a very broad one and it is almost impossible to discuss it 
without stepping beyond the financial aspects of the questions 
involved. 

Kindergartens and Special Schools. — In analyzing the ex- 
penditures of nearly every American "middle-class" family it is 
astounding to find that not a small portion of its expenses may 
directly be charged to " snobbishness." In other words, the desire 
to keep up appearances; to ape a neighbor having a much larger 
income; to strive to attain an intangible social status; these at- 
tempts and ambitions, built upon false standards, are a heavy 
tax upon the pocketbooks of thousands of families. This fetish, 
for such it becomes with many wives and mothers, and with some 
husbands and fathers, finds expression in every item that makes 
up the family budget, and education is not the least important outlet 
for this unnecessary leakage. 

There are thousands of families who feel that they must send 
their small children to private kindergartens. Many of these 
private kindergartens furnish transportation for the children, while 
others do not. It is, however, not sufficient for such families to allow 
their children to walk to these schools, or even to ride in the wagons 
furnished by the schools, but they must be carried to and from school 
in a private cab or auto. 
358 



CULTURAL WANTS IN THE FAMILY BUDGET 359 

The public school system in nearly every city and town of any 
size has established kindergartens which may be attended by children 
of suitable age, free of charge. Snobbish parents, perhaps, would 
not think of sending their children to a public kindergarten, and 
so snobbishness must pay for private tuition, and snobbishness 
must pay for special and private transportation, all of which is no 
small item of expense. 

Correspondence Courses. — There is much waste in corre- 
spondence courses. Many start such courses and never complete 
them, because the wrong course was selected, or because the plan 
and requirements of time were not well considered in advance. While 
the best of them are to be commended for adults who cannot other- 
wise satisfy their thirst for knowledge through directed and super- 
vised study, they are " makeshifts " for many who take them. 

Special Lessons. — Another great leakage in the average Ameri- 
can family is the " special lessons." Daughter must take painting 
lessons and son must have his music lessons. Mother must have a 
course in self-expression, and father must study Spanish. 

The writer is heartily in favor of education and of culture and 
all that contributes to culture, but it is the misdirected energy that 
constitutes a great drain upon the economic life of the family and 
of the community with which fault may be found. 

The public schools are teaching and teaching well the subjects 
of drawing and vocal music. If a child has artistic ability it may 
find its early expression through classes in the public schools. The 
fundamentals at least may be gained in these classes without resort- 
ing to private lessons. 

Aside from this fact, one should take issue with the ambition 
of a parent that starts a child on a course of instruction in either 
music or art, regardless of whether or not that child possesses a 
talent in that direction or even ordinary taste and ability. It is, 
of course, desirable that every child be given opportunity to learn 
to play and sing sufficiently well for the edification of its family and 
friends as well as for its own enjoyment, but there are thousands 
of children taking lessons in such subjects who never will be able 
to paint a picture worthy to be hung upon a wall : or to sing or play 
a selection that would please anyone but a fond and doting parent. 
If a child shows any aptitude for an art, by all means give it an 
opportunity for developing and expressing its talent, but there is 
no more excuse for giving private lessons in such subjects to the 



360 THE BUSINESS OF THE HOUSEHOLD 

average child than there is to teach it the principles of blacksmith- 
ing. Here then is a tremendous leak in the economic life of the 
nation. A statement was made some time ago in the public prints 
as to the amount annually expended for music lessons in the city 
of Chicago. The figures were so startling that they should not 
be quoted here without verification, but they ran into six figures, 
and this expenditure represented private lessons only. There is, 
for instance, in this city and perhaps in other cities, a directory- 
containing thousands of names of music teachers, and yet how many 
of their pupils have become known to the public as musicians, and 
how many of them have received value in full for their expenditures ? 

If one would economize, then one should be sure that the child 
has at least enough native ability to appreciate an art and to insure 
persevering study before much money is put into private lessons, 
and it is a simple matter for a child's ability in music to be tested 
by some unprejudiced teacher who will at once say whether there 
is any remarkable talent there that should be cultivated. It is a 
service which the public school teachers of music are ready to render 
in many instances. 

Elementary Education. — Every child is entitled to an elemen- 
tary education, which consists of eight years in the grades. 

Taking it for granted that the American school system is to be 
patronized and upheld, it should be understood that the parents are 
not going to spend money on special schools which may create 
undemocratic distinctions. 

In the first place, a school child should not be overdressed. It 
should not be taken to school in an auto if it can ride to and from 
school in the street cars, unless the distance is prohibitive. Carfare 
for school children is no small expense. Country children often 
walk three and four miles to school, taking their lunches with them. 
City children who live too far from the school to return home 
should likewise carry their lunch, unless the school provides a 
cafeteria at which a lunch may be had as cheaply as it would cost 
to put one up. Even a slight increase in cost is justified because 
of the better nutrition possible with the warm lunch. 

Unless closely supervised and intended for legitimate necessi- 
ties, school children should not have allowances and an attempt 
should be made to so dress them and regulate their conduct that they 
will not stand out from the rest of their playmates, or as repre- 
sentatives of a class above the average. These things may not seem 
germane to the subject of household finance but they are very 



CULTURAL WANTS IN THE FAMILY BUDGET 361 

directly related to it. If there are children in the family a proper 
appreciation of these principles means a considerable reduction in 
the family budget. 

Secondary or High School Education. — There are many 
reasons why it is desirable for every child to receive a High School 
education, but the mistake that many American families are making 
is the fact that they consider the " diploma " as the end in view. 
There are many caustic criticisms being made of our public school 
system and some of them are justified ; but we must remember that 
our public schools are still in their infancy and that an honest 
attempt is being made to better conditions. Many of the deficiencies 
laid at the door of the schools may be attributed directly to public 
opinion and public snobbishness. 

The High School still stands for that mystic something called 
iC culture," and while it has introduced manual and household arts, 
it is still chiefly an institution for feeding the universities and 
higher institutions of learning. What culture is, is still a debatable 
question. That it may be acquired without a high school or college 
education is now admitted. 

We are concerned with this subject only as it affects our finan- 
cial status. Statistics prove that as a rule the broader and the 
more complete a man's education, the greater will be his earning 
capacity. This is a general statement and it does not mean that 
there are not exceptions to the rule. There are, however, thousands 
of children, not capable of assimilating the usual course of the 
typical High School. Parents dislike to admit that their children 
are not the equal of their neighbor's children who have mastered 
such courses, and so they persist in forcing their own children 
through these courses, even though it takes their children six years 
to finish a course planned for four years' work. 

One real purpose of schooling is to help young people to find 
out their capacities and to develop their special talents, if they have 
any, when they do find themselves. If a child is able and inclined 
to go through the four years of high school cultural work without 
undue labor and continuous urge on the part of the parents, well 
and good. It should have the opportunity, but if the desire and 
the willingness and the ability to master these courses are not present, 
the parent should be satisfied with two years of high gfchool cultural 
work. If more opportunities can be afforded, the child should then 
take two years of special work in an occupational study, such as 

24 



362 THE BUSINESS OF THE HOUSEHOLD 

commercial work, including bookkeeping or stenography; or in a 
trade school in which the fundamentals of a trade may be mastered. 
Many such special courses are now offered by most large high 
schools. 

Every day in school means the probability of added ability, 
wealth and perhaps happiness later in life. The vocational schools 
are offering opportunities to boys and girls that cannot be evaluated 
in dollars and cents. The Federal government has recently made 
a very large appropriation to aid vocational training in the public 
schools, and the day is at hand when every boy and girl will be 
expected to make special preparation for the particular occupation 
which he or she expects to follow in life. 

If parents are financially unable to see their children through 
high school, every boy and girl, under such circumstances who values 
an education, should endeavor to work his own way through school. 
The completion of a high school education is the key that unlocks 
the door to nearly every desirable special school or institution of 
higher learning, and every effort and much sacrifice should be 
endured to gain that key. 

Thousands of dollars are annually expended needlessly for a 
so-called education that does not fit one for real life, or in other 
words, life's real work. 

Higher Education. — By this is meant college and university 
education. Some American families seem afflicted with a veritable 
mania for putting their children through college. The sole idea 
seems to be that a college training furnishes an opportunity of rais- 
ing the social and business status of the college graduate. It may 
mean an introduction into society for the daughter. It may mean 
that the son will associate with the sons of millionaires and later 
in life form financial alliances otherwise impossible and closed to 
the average young man. It is a great mistake to teach our children 
and to hypnotize ourselves with the delusion, that social ostracism 
awaits the non-college trained youth and that business opportunities 
and professional honors are impossible, or will be impossible, with- 
out a diploma from some college or university. 

This is a dangerously false standard to adopt. It means the 
establishment of an intellectual caste. Such a point of view is 
wrong, of course, and it can only result in harm to the cause of edu- 
cation. Those who enter college with such ideas rarely "make 
good" and they constitute a class that well might be called the 



CULTURAL WANTS IN THE FAMILY BUDGET 363 

" parasites of society." A college training is highly desirable, but 
it is by no means vital or necessary to any individual. Eeal success 
can be had in any and every line of endeavor without it. There are 
thousands of college graduates eking out an existence on a mere 
pittance as clerks, but that does not necessarily condemn the value 
of a higher education. On the other hand, there are thousands 
of our most successful men who never have had a high school 
education. 

One should not be governed by exceptions to general rules — 
and the general rule here is that higher education for the boy or 
girl who values it will pay both the individual and society. The 
American people have been accused of superficiality, and if there is 
one institution above all others that will cure that trait it is the 
American college and university. College should be the goal of 
every American boy and girl. Because others have failed; because 
others have a mistaken and wrong attitude toward higher education 
and its purposes, should not daunt one from a determination to 
finish a college course, and even though it cannot be done uninter- 
ruptedly, there is no reason why one should abandon the attempt. 
Our colleges show an occasional man and woman past middle age 
who is finishing courses, perhaps begun in their younger years. 

In considering the question of finances, one should look upon 
this subject in a truly liberal spirit. To send a son or a daughter 
through the university for the average parents, entirely at their own 
expense, means a long sacrifice made up of many petty economies 
seldom appreciated by children. Unless one has more than the 
average income, the majority of parents should expect that both son 
and daughter will contribute through their own efforts to help 
pay the expenses of a college education, if it is desired. Young 
men and women should not be sent to the university unless parents 
are sure they will assimilate the culture such an education aims 
to give, or unless that education is going to contribute directly 
toward fitting them for some vocation or profession. 

In any event, it is not necessary to furnish high school or college 
students with allowances for personal indulgence. It is not neces- 
sary to provide them with all the luxuries enjoyed by the sons and 
daughters of wealthy men. It is not necessary or desirable for 
parents to assume all of the burden of a college education. 

Children have a right to expect that their parents and the state 
will provide them with an educational foundation upon which they 



364 THE BUSINESS OF THE HOUSEHOLD 

themselves may build later in life. Beyond this, they should de- 
pend largely upon their own ability and energy. If parents can help, 
well and good, and if they do help, much may be saved by ascer- 
taining early the mental capacity of the child to assimilate the stud- 
ies proposed. If a broad, cultural, higher education is beyond the 
means of parents to give or of children to assimilate, the latter 
should confine their education after the second year of high school 
work to preparation for life itself by learning some trade or by 
mastering some special occupation. 

Children should have as much education as they are capable 
of, but they should not be forced or compelled to take courses for 
which they have no capacity or which they have no ability to master. 
The purpose of the schools is to help them find themselves as early 
as possible, and to prepare them in some practical way for living. 
The highly cultural studies should be reserved for those who have 
the ability and the appreciation necessary to master them. 

RECREATION 

A large part of a child's education comes through his association 
with his fellows. It does not stop when his books are closed. What- 
ever amount of the budget be set aside for " Education " in its varied 
forms both for children and adults, there must be some allotment 
also for recreation. As recreation, intelligently indulged in must 
result in better health for the family, at least one-third of the 
amount that otherwise would be allowed for doctor bills may be 
included. 

Whether the expenditure allowed for wisely-directed recreation 
be large or small, the net returns from the investment will be found 
to be beyond all proportion in relation to the other items in. the 
budget. 

" All work and no play makes Jack a dull boy " is both physio- 
logically and psychologically true, not only of Jack but of Jill. 

One of the most pertinent criticisms of American life is our 
seeming lack of leisure and inability to play. Although we may be 
thankful that we do not have the so-called u leisure classes " of 
European countries, we nevertheless may learn from them. In fact, 
we have been learning the value of recreation and true culture. 
The business man no longer works incessantly, looking forward sim- 
ply to a cessation of labor later in life when he may retire from 
the activities of the commercial world and revel in the cultural 



CULTURAL WANTS IN THE FAMILY BUDGET 365 

pursuits of a Utopian future. He has learned, rather, to mix his 
recreation and culture, with his daily tasks. Recreation is just as 
essential for the body as education is for the mind. In fact, in 
modern life provision for recreation is as important as that for 
education. Educators are finding it necessary actually to teach our 
children how to play and to direct their play; and play is now 
used as a medium for self-expression and for teaching both the 
utilitarian and cultural subjects of the classroom. 

The time was, when many men prided themselves upon the 
fact that they had not had a vacation in ten years. To-day, the 
employers of such men know that the time lost in a vacation is not 
a liability but an asset. Opportunities for recreation are becoming 
part of the budget of successful business houses, and the time has 
come when it must be recognized as a vital factor in the family 
budget ; not from the point of view of expenditure, alone, but also 
from that of return on the investment, in the way of renewed vigor 
and energy and greater earning powers. 

Recreation a Mental and Physical Necessity. — Much is being 
written regarding the dangers of fatigue, and the nerve specialist 
warns us of depleted and exhausted "neurons." We know that 
physical exhaustion means mental stagnation, and that nerve ex- 
haustion often brings about physical conditions that permit auto- 
intoxication, or a poisoning of the body from the results of its own 
improper functioning. All these terms refer to conditions which 
may arise from over-work, long-continued strain, or ceaseless 
monotony. 

It is said that even a machine becomes tired. A barber will tell 
you that he must rest his razors. Some metals are even susceptible 
to changes of atmosphere. Molecules of steel become disorganized 
through constant use, and if the pressure and temperature of the 
atmosphere can affect metals, it is obvious that the functional 
activities of the human system must be still more susceptible to 
environment, and to continuous wear and tear. 

It is not only the body that tires, but that mysterious something 
we call " mind " seems also to demand at frequent intervals a cessa- 
tion from activity. The influence of the mind upon the body is 
almost too patent to need mention, but it must not be lost sight of 
in studying the question of recreation. 

Change of Occupation a Rest. — One of the most important 
principles to consider in this connection is the well-known saying 
that " change of occupation is rest." 



366 THE BUSINESS OF THE HOUSEHOLD 

One does not need to cease from work in order to rest, or to find 
recreation. Change of occupation may bring relief, amusement 
and recreation. To carry out this principle, however, an employ- 
ment of entirely different character should be assumed. A sedentary 
worker, such as a bookkeeper, should not attempt to find his recrea- 
tion in literary work, but he may well afford to spend an hour a day 
at physical toil in the garden or in sawing wood. There is a 
practical limit, however, to this theory of changing work for rest; 
if one is exhausted with any kind of work one needs rest, not more 
work. 

Combining Culture with Recreation. — A great mistake is 
made in assuming that a vacation cannot be enjoyed or suitable 
recreation taken, unless in the conventional way. A formal dinner 
party; a week at a fashionable resort; a tour of the far West; a 
trip to Europe ; a summer at the seaside ; a camping trip — all may 
be cited as illustrations of many persons* conceptions of recreation. 

It seems, on examining the conditions, that there is even more 
necessity of directing the play of the adult than that of the child 
on the playground. It is just as possible to make one's vacation 
of cultural value as it is to make it merely an excuse for letting 
down the bars of self-control, or of following in the rut of con- 
vention. A vacation should not be purposeless or aimless, or in- 
dulged in merely for the sake of change. The vacation should be 
planned and directed with some aim in addition to that of rest. 

If the vacation is to be taken away from home, why go every 
year to the same resort, and why do the same things over and over 
again? Why not intelligently plan to see as many parts of our 
country as possible, and at the same time satisfy one's love for 
fishing, hunting and camping, or hotel life if that is what one 
desires? The great natural parks preserved by the Federal gov- 
ernment, the wonderful canyons of the West, the beauties of New 
England scenery are all worth the expenditure of our time and 
savings. Even if, as is probably true of the majority, one never 
goes very far beyond the confines of one's own state, yet visits to 
the nearby large cities, one by one, and year by year, would have 
something of educational as well as recreational value. If such trips 
are beyond the resources of an individual, there are the nearby 
attractions of forest and stream and lake, and the nearby cities and 
towns, often within trolley ride of each other. Perhaps we know 
little of the city in which we live and of its environs. Weeks 



CULTURAL WANTS IN THE FAMILY BUDGET 367 

may be spent in a large city exploring its mysteries and resources. 
Yery few citizens of Chicago or New York are thoroughly familiar 
with their home city. An hour's ride from the heart of Chicago 
will bring one into forests primeval, or into fields carefully cultivated 
and planted to grains, plebeian vegetables or covered with a riot of 
flowers. In one section of the city may be seen life as it is lived 
in the cities of Poland, and in other sections the streets are teeming 
with the peoples of Italy and Greece and of nearly every other 
civilized country, all living their lives as nearly as possible as 
though they were in their native land. 

Whatever be the form of recreation, why should it not be in- 
telligently planned with a definite view of learning, of gaining new 
experiences, of seeing new sights and new environments, as well as 
to secure merely passive rest or conventional amusement. 

The Danger of Unsupervised Vacations. — Too much cannot 
be said of the danger that confronts the young girl-worker whose 
vacation is a week or two at some nearby summer resort. For 
months money is saved and scrimping economy is practiced that new 
clothes may be purchased and expenses provided for the trip. In 
such cases it is almost impossible for the mother or an older member 
of the family to accompany the girl, and so she goes unchaperoned. 

At such resorts, respectable as they may be, young people are 
disposed to throw off the restraints of convention. Introductions at 
such places are not deemed necessary. -Girls meet strangers whom 
they never expect to see again, and often extend to them privileges 
they would not allow an old friend at home. Were a stranger to 
speak to such a girl upon the streets of her home city, she would 
resent it, but here for some reason or other it is quite the thing. 
And so, idle and silly flirtations ensue that often lead to bitter 
consequences, and the price paid for the two weeks' vacation is 
more than life itself may ever be able to redeem. A thorough study 
of this whole problem of recreation for the masses should be made, 
and each individual can do a part of this work by studying his or 
her own problems of rest and recreation. 

Health Dangers Through Recreation. — In leaving the school- 
room, the home, the office and the store for out-of-door vacations, 
one is liable suddenly to throw off restraints, plunge into active 
sports and indulge in physical efforts not in keeping with normal 
conditions that obtain during the greater part of the year. The 
result is often disastrous. 



368 THE BUSINESS OF THE HOUSEHOLD 

One should plan a vacation gradually, weeks before it is due, so 
that at the last moment there need not be many details still unatten- 
ded to, resulting in a nervous tension that does not contribute to the 
first day's trip. Due time should be taken for settling in new quar- 
ters and surveying the surroundings before entering into strenuous 
activities. 

Climbing, hunting, walking, swimming and all sports should be 
entered into gradually until one has become accustomed to such 
changes. 

The heat of the sun is a real danger to those not accustomed 
to out-of-door life. Change of water often causes temporary illness, 
and quite frequently the drinking water at summer resorts is not all 
that it should be. Typhoid is often contracted from the drinking- 
supply furnished at such places. Until satisfied that the source of 
such supply is free from contamination, it is well to drink bottled- 
waters, or boiled beverages. Typhoid inoculation is desirable. 

Another very real danger is contamination from water, in which 
large numbers of people bathe daily. During the summer of 1916 
in Chicago, the unusually hot weather drove thousands of people to 
the lake for bathing purposes. The lack of wind and moving air 
prevented much movement of the lake water, and the result was that 
a number of bathers contracted incurable diseases from which more 
than one died. 

One should not allow the vacation to be spoiled from worrying 
about every possible source of contagion or contamination, but 
reasonable precautions should be taken to avoid needless dangers and 
to guard against excesses of all kinds, especially during hot weather. 

What Constitutes Recreation. — Having assumed that the 
purpose of recreation is rest of both body and mind, and all that 
that includes, we may ask ourselves, "What is it that constitutes 
recreation ? " The question in part may be answered as follows : 

First: That which contributes to the recuperation of the body. 

Second: That which brings rest and refreshment to the mind. 

Third: That which adds to one's cultural assets. 

Absolute inactivity may rest both mind and body, and yet even 
physical activity may accomplish the same result and at the same 
time build new tissue, strengthen flabby muscles and restore tone to 
the nervous system. 

Sleep and mental inactivity for a time may prove a panacea 
for nervous conditions, and physicians do recommend absolute rest 



CULTURAL WANTS IN THE FAMILY BUDGET 369 

in certain cases ; but for the normal individual, needing a vacation, 
a hitherto unexperienced or an unexpected mental stimulus may 
often serve the same purpose, and in addition, result in the accumu- 
lation of cultural assets of inestimable value. 

Different Phases of Recreation. — Recreation, then, may par- 
take of the nature of any of the following phases : 

First: Complete physical passivity. 

Second: Complete mental passivity. 

Third: Physical activity. 

Fourth : Mental activity. 

Fifth: Partial physical passivity combined with intelligent and 
directed mental activity. 

Sixth: Partial mental passivity combined with intelligent and 
directed physical activity. 

In any event, recreation should be a change from former con- 
ditions and habits. Monotony must be broken. New tasks must be 
undertaken. New environment should form the theater for new 
activities. Complete physical or mental passivity should be only 
for those under the immediate care of a physician. Otherwise, 
it spells " stagnation." 

Different Forms of Recreation. — The following forms of recre- 
ation may be mentioned as a basis for a more extended study : 

Physical Activities: 

1. Athletics. 

(a) Out-of-door games. 

(6) In-door games. 

(c) Gymnasium work. 

(d) Kiding. 

(e) Swimming. 

(/) Walking and running. 
(g) Boating. 
(h) Dancing. 

2. Work. 

(a) Gardening. 

(b) Any physical work. 
Mental Activities: 

1. Amusements. 

(a) Theater. 

(b) Movies. 

(c) Parties and socials. 

(d) Mental games. 
24 



£70 THE BUSINESS OF THE HOUSEHOLD 

2, Cultural. 

(a) Lectures. 
(6) Concerts. 

(c) Music in general. 

(d) Eeading. 

(e) Literary work. 
(/) Hobbies. 

Involving Change of Environment : 

1. Travel. 

(a) Motor, driving or horseback trips. 
(&) Trolley trips. 

(c) Extended trips by rail or boat. 

(d) Extended walks, or bicycle trips. 

2. Out-door Activities. 

(a) Summer resorts. 

(6) Seaside and mountain resorts. 

(c) Fishing. 

(d) Hunting. 

(e) Camping. 
(/) Country life. 

In the consideration of a vacation, or of any recreation, one 
should take into consideration the necessity for both physical and 
mental activities, and rest, as well as for change of environment, 
combining both in-door and out-of-door forms of amusement. 

Systematic Recreation. — Kecreation should be systematic, and 
not hit-or-miss indulgences. A real vacation should be taken at 
least once a year, whether it be for one or more weeks, or for an 
entire month. Usually the husband's vacation should be that of 
his wife also. If there are self-supporting adult children living at 
home, the family may combine their resources and take their vaca- 
tions together, although under right conditions for each, a variety 
of interests brings back to the home a larger life in the manifold 
experiences undergone and related after the family is again united. 
Brother on a motor-trip; sister at a summer resort; father hunting 
and mother at the seaside may be an extreme illustration, but there 
are families in which vacations are spent somewhat on that plan. 
The expense for a single individual is always greater in proportion 
than for a party, and sometimes a much better time could be had, 
if all members of the family combine their resources and spend their 
vacations together. Of course one objection would be that a single 



CULTURAL WANTS IN THE FAMILY BUDGET 371 

place might not satisfy each member of the party, while another 
obstacle would be the difficulty of securing vacations for each work- 
ing-member at the same time. These objections, however, are not 
insurmountable and the greatest good to the greatest number, for 
the longest time should be carefully calculated. 

The summer vacation should be looked forward to and planned 
for during the rest of the year, but money laid aside from month 
to month for this purpose should not be allowed to interfere with 
one's regular savings fund. If a trip away from home is not pos- 
sible, there are many other ways of having a good time, if one is 
willing to look for ways and means. 

Other recreation than the summer vacation is necessary and one 
should not be satisfied to scrimp and save all the year for a week 
or two away from home and thus to be denied all pleasures during 
the rest of the year. 

The year's program may well be outlined season by season, or 
month by month. The summer vacation may be assumed to take 
care of that season of the year. The fall, winter and spring seasons 
should now be considered. With fall and winter come the opera 
season and the drama; dances, parties, concerts and socials. If one 
is especially fond of the opera, the drama or of concerts, why not 
plan to attend a series of one or the other as the main diversion 
of the fall and winter seasons? Then in addition, the dance, the 
party and the activities of Church, Club or Lodge are not to be 
forgotten. With the spring, long walks into the country, trolley 
rides, picnics, excursions and gardening furnish sufficient oppor- 
tunity for a full program. So with a little forethought one may 
easily plan ahead for the entire year, somewhat as follows : 

Summer Season: Annual vacations. 

Fall Season: Concerts, lectures, drama, club and church ac- 
tivities. 

Winter Season: Theater, dances, entertaining, club, and church. 

Spring Season: Neighborhood excursions and gardening, in addi- 
tion to those mentioned above. 

" The Movies." — The above are the major activities, but there is 
also the round of anniversaries, birthdays, special family days and 
holidays, which bring pleasant occasions into almost every month, 
and suggest as the next problem, that of the monthly and indeed a 
weekly program. For this the movies are not to be despised. In 



372 THE BUSINESS OF THE HOUSEHOLD 

every city there is seldom a week that does not witness in some one 
or more moving-picture houses a screen-picture of unusual worth, 
such as Dickens' "Great Expectations" or Hawthorne's "Scarlet 
Letter." The announcements of the more important houses are 
usually printed in the city papers. In this way many of the great 
standard novels and plays may be witnessed at a small expense, and 
a visit to picture houses in unfamiliar quarters of the city may add 
zest to the occasion. It is a habit not to be despised to take one night 
every week and visit some good picture show. Grant that such recre- 
ation is plebeian in the minds of some people^ yet a good moving- 
picture is far preferable to a poor and perhaps coarse " show " for 
which one would have to pay not less than a dollar a seat. Eeal 
culture may in this way be secured with good and cheap amusement. 
Discrimination, of course, must be exercised in choosing this, form 
of amusement as in all other things. 

Some standard of judgment is necessary in selecting pictures 
to be seen. One of the best rules is to see no story-picture that you 
would not he willing to read in iooh-form. How many of us would 
be ashamed to be seen reading the stories we spend hours of time 
viewing on the screen ! But what an intellectual treat we may have 
if we could see one really good standard novel or play each week 
depicted upon the screen, with an occasional real drama on the 
legitimate stage. 

Reading. — It is disheartening to watch the average street-car 
or suburban crowd, morning and night; men, women, girls and 
boys, all poring over the sporting-pages of the city newspapers. 
Such reading does not even have the merit of real sport as an excuse 
for wasted time ! Then we have the office and shop-girl thrilled with 
the daily column of sentimental " advice " of some popular space- 
writer. 

True sport should ever be encouraged but professionalism in 
sports is opposed to healthy, vigorous efforts in such directions on 
the part of amateurs. If the reading of the sporting page, or of 
so-called advice to adolescent girls, will lead to a further perusal 
of the solid news of the daily paper and an awakened interest in the 
affairs of the world, perhaps the former diversion may be pardonable. 

The news of the day should be discussed in the home and that 
is possible only through newspaper reading, but discrimination 
should be exercised in what is selected for perusal. 

Is there no longer pleasure and delight in planning excursions 



CULTURAL WANTS IN THE FAMILY BUDGET 373 

through the realms of our great English literature ? Are our master- 
writers mere names to be conjured with in High School exam- 
inations? An hour's vacation, every day of the year, might be 
taken by everyone able to read, if one would deliberately plan the 
reading of the world's greatest stories. Recreation for the mind 
then would in truth be combined with culture. 

Books and Magazines. — The test advice to offer to those seek- 
ing reading matter would be to suggest that one consult one's local 
librarian, or if the town is without a public library, to seek advice 
from the librarian in the nearest town or city that supports a public 
library. ■ 

Many states have traveling libraries in charge of a State Libra- 
rian at the state capital, who is always willing to advise one in 
regard to reading material. Again, the public school system itself 
often supports small libraries ; and valuable advice may be secured 
from the local school librarian or from teachers and principals. 

The United States Government through the Bureau of Educa- 
tion has supplied a great need in its Reading Courses. 

A word of caution may well be sounded against the reckless pur- 
chase of books sold by traveling agents. Often the contents of such 
books are worthless, or when they are standard works, they are 
usually bound in bindings that are made to appeal to the unsophisti- 
cated purchaser, and sold at prices that perhaps should be prohibi- 
tive to most people. If a set of Dickens was offered in fancy bind- 
ings at seventy-five dollars a set, it would be better policy to invest 
the money in three or four sets of standard authors in unpretentious 
but durable cloth bindings that could be purchased for that amount. 

For those who desire to build up a showy library the purchase 
of complete sets, that is, all of the writings of an author in a set, 
may be desirable, but for the average person it is better economy to 
select individual volumes. 

One should be wary of modern fiction, at least unless well ad- 
vised as to its character and literary merit. It would be far better 
to make a systematic attempt to familiarize oneself with the great 
literary masters of English and other languages before dabbling 
with the more recent writers of fiction. 

Librarians are ready to assist, and refer one to books giving 
advice on the problem of selecting reading. If one has a taste for 
history, the standard books covering the subject should be read and 
these may well be supplemented by the numerous historical and 
semi-historical novels. 



374 THE BUSINESS OF THE HOUSEHOLD 

In the matter of periodical literature, a magazine of general 
review should be in every home. Such a periodical might be the 
weekly Literary Digest, or the Independent, or the Outlook; or a 
monthly such as the Atlantic Monthly, the World's Work, or Review 
of Reviews. If other magazines can be afforded, selections should 
be made to cover the individual needs of the family. 

Next, a religious or denominational paper should be a part of 
the family reading. 

A professional or trade paper may interest the father. If the 
man of the house is a farmer, a good farm paper is indispensable. 
Mother should be supplied with a good home magazine. Neither 
should the children be forgotten. There are many good children's 
periodicals, such as the Youth's Companion and St. Nicholas, and 
those given to popular science, such as The Scientific American and 
The Geographical Magazine, will especially interest the growing 
boy. 

Finally, a daily newspaper should be included. Even on the 
farm, the large city dailies may be delivered not much over twenty- 
four hours old, or a weekly issue may be substituted; and they are 
to be preferred to small local papers, for aside from the news of 
the day, which in itself may be educative, the great dailies now 
contain a vast fund of valuable information on many subjects of 
interest to the family. 

The family budget, if possible, should so be made as to allow 
for yearly subscriptions to a number of good magazines and papers, 
or to membership in a magazine club composed of neighbors who 
exchange their reading material. It should also allow for a monthly 
fund to be invested in the building up of a family library, and 
adding new books to those already possessed. 

Much real recreation may be had from good reading, and this 
should not be neglected in the making of the family budget. 

Games and Physical Exercises. — Too much can hardly be 
said in favor of daily physical exercises at home or at the gym- 
nasium ; of bowling ; basket-ball ; foot-ball and base-ball ; motoring, 
bicycle riding ; walking and swimming— all of them real sports that 
may be indulged in almost the entire year ! 

In conclusion let every individual and every family plan their 
recreations and vacations in advance, seeing that each week is sup- 
plied with some special diversion; that every day brings its own 
exercises, games, and rest: that each of the seasons has its own 



CULTURAL WANTS IN THE FAMILY BUDGET 375 

program and that recreation finds its proper place in the family 
budget. 

An occasional unexpected pleasure, a surprise in the day's pro- 
gram, is very desirable and beneficial, but on the whole, our diver- 
sions should be as well planned as our menus. 

Simple pleasures and homely joys — these are the real recrea- 
tions that furnish mental refreshment, physical renewal and 
spiritual growth. 

Church Activities. — This subject should not be overlooked in 
the family budget, as relations to one's church and its services 
and social activities furnishes an important part of the social life 
of the average family. 

Life-long friends are often formed among acquaintances banded 
together in the work of the church, and it bears a lasting influence 
in the lives of children. 

The relation of the church to the community and to the world 
at large is vital. The charitable work and spiritual consolation 
offered to those in need, and the aid extended to churches in new 
communities and to foreign missionary work in extending religious 
influences into needy parts of the world, thus passing on the gift 
of religion which centuries ago came to our forefathers, and inci- 
dentally aiding in the world-wide movement of civilization — all 
this certainly represents a cause that everyone should be proud to 
contribute to. 

Aside from questions of religion, the church offers many social 
advantages that are both recreational and educative. The socie- 
ties supported by the average city church often numbers a dozen 
or more. Apart from the regular services provided by these 
societies, they each represent social activities of value to chil- 
dren, young people and adults. Socials, entertainments, lectures 
and concerts, picnics and excursions, to say nothing of the regular 
activities staged in the parish house or church parlors, provide 
healthy recreation of the highest type. 

Charity. — Charity and philanthropy, like religion, has a right 
to demand recognition on the pages of the Household Ledger. 

The church represents many charities, but aside from religious 
institutions, there are various organized charities to which every 
one should contribute. Benefits are often given to aid worthy 
causes, and these provide sources of amusement and recreation, at 
the same time making it possible foT one to contribute a part of 
one's income in the support of such beneficent organizations. 



376 THE BUSINESS OF THE HOUSEHOLD 

The Public School Extension Work. — Of recent years, there 
has been considerable demand on the part of the public for the 
use of public school buildings for neighborhood activities during 
the hours when the buildings are unoccupied by classes. This move- 
ment has spread all over the country, so that now in many places 
may be found neighborhood clubs that hold their meetings in the 
school house. Dancing, games of many kinds; lectures, entertain- 
ments, and pictures j and the free use of the gymnasium and swim- 
ming pool for the general public, are some of the forms of recrea- 
tion now represented by the public school. 

A family can no more afford to be a drifter in a community 
than can an individual; but by identifying itself with the various 
community organizations, such as the church, the lodge, the club, 
with neighborhood and charitable organizations, a seemingly endless 
round of pleasures and recreational activities are made available. 

Entertainment in the Home. — The complexity of modern life, 
combined with the rising cost of living, has made entertaining in 
the home, for many families, one of the most expensive luxuries. 
This should not be so, but we must face the facts as they exist. 
With other families this is not so much the case. A neighbor or 
friend is welcomed in the home without any advance preparation, 
and whatever is on the table is offered with the true spirit of hospi- 
tality and accepted as a matter of course. 

But this is not the kind of entertaining found in many city 
homes of this generation. Extensive planning precedes the ex- 
pected visit; the grocer and the butcher and the baker, the delica- 
tessen and perhaps the caterer are called in, flowers are ordered 
and perhaps gowns refurbished, or if means are more limited the 
hostess works strenuously in preparation for the coming event. The 
simplest noonday lunch, when entertaining, becomes an elaborate 
affair, while the afternoon tea adds an additional burden upon the 
hostess who would scorn to be called a housewife. In such homes, 
simple games for young people are almost taboo. They have given 
place to formal dances that call for more or less elaborate toilets. 
Young men and young women feel called upon to ape their elders 
and the real spirit of youth is too often absent from our modern 
forms of entertainments. Such should not be the case. 

" How can we avoid lavish home entertaining ? " or rather 
" How can we entertain in a simple manner that will appeal to 
our guests ? " are pertinent questions. " Given to hospitality " will 
not strain the budget. 



CULTURAL WANTS IN THE FAMILY BUDGET 377 

With little effort, a family can soon give the impression that 
friends are always welcome in the home, and without formal invita- 
tion. Such a family soon will be known favorably for its hospitality 
and largely because the friends of the family all know that no special 
preparations are made for the reception of the casual guest. What 
is on the table for the family, is always considered " good enough " 
by the fortunate caller at such a home who chances to become a 
guest at a family meal. 

And then there is the occasional evening's entertainment. If 
cards have become a daily habit, cards seem the only recreation to 
offer a guest, but such a recourse simply reveals the paucity of one's 
ability to entertain. There are other forms of entertainment be- 
sides card games, enjoyable though they may be, and besides there 
are many who do not know how, or care, to play cards. 

Informal conversation sometimes seems a lost art, as is the 
art of reading aloud, and yet how entertaining an evening can be 
when the host or hostess or some guest proves to be a brilliant con- 
versationalist ! Surely there is enough of real interest in every 
community, and there is sufficient activity in the social, commercial, 
and professional world, as well as in the life of the nation, to provide 
material for discussion any evening throughout the entire year. 

xAnd w T hat of music? Many families possess some one or more 
members of musical ability, if not of real talent in the vocal ot in- 
strumental field. Such favored individuals are far better equipped 
to entertain than many much advertised musical stars whom we pay 
to hear. The modern phonograph and the latest piano-players need 
no longer be considered as the producers of mechanical music, as the 
reproduction of vocal and instrumental music on these instruments 
is truly marvelous when properly handled. They also make possible 
the informal home dance, and so in a number of varied ways, home 
talent and home entertaining may be made a real treat. The "old- 
fashioned," but now re-born " sing " should become common. 

The bringing in of the children's friends during the day, or for 
an occasional afternoon or evening, introduces the adult members 
of the family to a forgotten world. As the women of the family feel 
the need of entertaining women friends in the home, so the men 
of the household often delight in introducing their men friends 
into the family circle, and such interchanges bring into the home a 
breath from the out-door world, creating new interests and new 
things to think about. 



378 THE BUSINESS OF THE HOUSEHOLD 

Let all home entertaining be charged with simplicity, and one 
will be surprised at the pleasure and renewed energy derived from 
such social activities. 

Simplicity should mark all forms of entertainment, except per- 
haps on special occasions. Let us have simple pleasures and homely 
joys; sweet converse and soft music; a good book; simple fare and 
a few friends, and with the opportunities all about us for games and 
sports and vacations, what more should one ask for in the form of 
recreations ? 

QUESTIONS 

1. What is meant by the term Elementary Schools? 

2. What is meant by the term Secondary Schools? 

3. What is meant by the term "Higher Education"? 

4. In what way does snobbery add to the cost of education in the kinder- 

garten? In the High Schools? In the Universities? 

5. What is meant by cultural studies? Is any study not cultural? 

6. What does "utilitarian" mean as applied to education? Is any study 

not utilitarian? 

7. Why are special lessons frequently an economic loss? 

8. Is a High School diploma necessary to success in life? 

9. What is the real purpose of High School Training? 

10. What mistaken attitude is sometimes taken in regard to a college 

education ? 

11. Give a definition of the word "recreation." 

12. Does your favorite form of recreation answer to this definition? 

13. Would you call it a productive recreation? That is, does it directly 

contribute to physical or mental development and at the same time 
provide necessary refreshment both for the body and the mind ? 

14. Can you tell why change of occupation is said to be a rest? 

15. What is your opinion of the "movies" as a form of recreation, or of 

education ? 

PROBLEMS AND DEMONSTRATIONS 

1. Plan a program of recreation for the year within the standard of living 

of your own family. 

2. Plan such a program more in detail with reference only to the coming 

month. 

3. Make a list of the names of the best pictures you have seen on the screen. 

4. Make a list of desirable places to visit during the summer within 

walking distance or accessible by street-car service from your own 
home. What means of education do these places furnish? 

5. Make a list of any important or desirable places within the city limits 

of your own town that one should visit. 

6. Why do you consider them important? 

7. Make a list of books you have read during the past year, other than 

those read or studied as a part of your school course. 

8. A family of three adults visits the motion picture houses, once each 

week, paying 15 cents admission each. How much does it cost the 
family per year? 



CULTURAL WANTS IN THE FAMILY BUDGET 379 

9. Another family of three adults makes a practice of attending the regular 
theatre twice a month, paying $1.50 each for admission. Carfare 
amounts to ten cents each, per trip. How much more does it cost this 
family for this form of amusement than it costs the "Movie" family? 

10. How many admissions to a 15 cent picture house could be purchased 

with the money spent each year by the "Theatre" family ? 

11. How can you save to buy six good books, six songs or records, or six 

games during the coming year ? List the items you would like to buy. 

THEMES FOR DEBATE 
Resolved: 

1. That a High School Education should be the minimum attainment for 

all young people. 

2. That a College Education while desirable is not essential to the highest 

success. 

3. That the "Movies" represent an economic factor of educational value. 

REFERENCES 

Chautauqua Reading Courses. Chautauqua, N. Y. 

Dean, A., Our Schools in Wartime — and After. Ginn & Co. 

Miller, W. H., Camp Craft. Chas. Scribner's Sons. 

Woodhouse, Mary, Drawing Room Games and Amusements. E. P. Dut- 

ton & Co. 
Home Songs. Oliver Ditson Co., Boston. 
The Good Old Songs, The Franklin Square Collection. Oliver Ditson Co., 

Boston. 
National Songs and Hymns. 

U. S. Bureau of Education — Reading Courses. Washington, D. C. 
U. S. Bureau of Education — Three Short Courses in Home Making. 

Washington, D. C. 



PART IV. 

LEGAL AND BUSINESS STATUS OF THE 

FAMILY 

CHAPTER XXX 

SOME PHASES OP THE LEGAL STATUS OF THE 

FAMILY 

A brief study of the institution of the family, the maintenance 
of which justifies the study of household finance, should be made 
by every young woman and young man. Children are nearly all 
reared in families, and nearly all men and women live their adult 
lives as parts of families. Some knowledge of this institution is 
necessary in order that it may be successfully financed. 

A study of the family may be made in terms of the relations of 
the individuals who make it up, or in terms of the larger com- 
munity, or society at large, which surrounds the individual family. 
From the latter point of view, the laws which control the family are 
of first importance; from the point of view of its members, the 
purpose and characteristics of a good family life are of importance. 
The latter phase of family life may be here simply mentioned as 
regards one or two basic matters. Conscious ideals of an ethical 
and religious nature, which guide personal action and sustain in 
trouble; the organization of the economic and financial life of the 
family in accord with the partnership relationship between the 
two adults who establish it and a co-operative spirit between adults 
and children ; the importance of finance, thrift and saving, but the 
greater importance of the quality of life secured by the family 
group; the proper meeting of community relationships, including 
those of intelligent and patriotic citizenship — all these and many 
other principles control the purpose and activity of a family life 
that is really good — good for its own members and good for the 
state. 

What the state does for the family group can scarcely be meas- 
ured — all that we enjoy in the form of social relations, in the en- 
joyment of home and property and in the protection of life and 
liberty, we owe to our country. One measure of one's country's 
380 



LEGAL STATUS OF THE FAMILY 381 

service to the family is in the laws adopted by state and nation which 
concern the family, and a few of these will be considered in a dis- 
cussion of the legal status of the family. 

Knowledge of the Law Desirable. — In contracting business 
relations the parties involved usually make themselves familiar 
with the legal status of the partnership or company about to be 
formed, as well as their rights as individuals and as partners in 
such associations; or, they secure legal advice to protect their in- 
terests in the newly-formed concern. Such a procedure, however, 
is not the rule with those who enter into marriage relations, which 
of necessity, more or less, change the legal status of the individuals 
who become parties to such contracts. 

Everyone should become thoroughly conversant with the more 
general legal principles and important laws that affect the real 
and personal rights of the individual, whether married or un- 
married. Children have rights in the property of their parents. 
The law affords them protection in the way of proper support, 
guardianship and education. Wives have special legal privileges 
and rights in the property of the husband and in his estate, so 
that it is important that one should be fully cognizant of the 
rights conferred upon one by the law of the state. 

The Common Law. — The law of this country is based upon 
the English system of jurisprudence, with the possible exception of 
the law of Louisiana, which retains traces of a system of French 
jurisprudence. New Mexico, Arizona, and perhaps other states 
first colonized by the Spanish, undoubtedly show in present laws 
similar influence of Spanish jurisprudence. Specifically, the com- 
mon law of England is the unwritten law of England, represent- 
ing interpretations, usages and principles that have obtained and 
developed through the centuries in contradistinction to subsequent 
laws of Parliament and the recent decisions of the various English 
courts. Technically speaking, in this country we do not have a 
similar collection of unwritten laws, although the decisions of our 
courts are often based upon the common law of England. 

The Federal Constitution and Legislation. — The Constitu- 
tion of the United States is the basis of our written jurisprudence. 
It is a written agreement of general principles subscribed to by 
the original thirteen states, to which amendments have been made 
from time to time. Powers not expressly given to the Federal 
government by the Federal Constitution are reserved to the in- 



382 THE BUSINESS OF THE HOUSEHOLD 

dividual state governments. Many contend that the scope of 
the Constitution is altogether too narrow to meet the exigencies of 
present-day conditions, and amendments are frequently proposed, 
although not many have been adopted. 

Congress is the sole law-making power of the Federal govern- 
ment. It is assumed that laws passed by Congress do not conflict 
with the Constitution. If they do, if action is brought in the proper 
Federal courts, such laws may be declared unconstitutional and 
therefore null and void. 

State Legislatures. — Each state has its own legislature which 
makes the laws governing within its own jurisdiction. As is the 
case with Congress, laws are sometimes passed by state legislatures 
that are unconstitutional, and which may be so declared if action 
is brought in the proper courts. 

Federal laws passed by Congress and those passed by the vari- 
ous states sometimes conflict, and such circumstances have been 
the cause of much discussion and trouble ever since the formation 
of the Union. 

Legislation by Courts. — Neither Federal nor state courts 
possess law-making powers, but it is the function of the court in 
this regard to interpret the meaning and the intent of the law, 
and to pass on the "constitutionality" or validity of a law, also 
when its aid is legally invoked the court sees to it that infractions 
of the law are suitably guarded against by the punishment of those 
who are guilty of violations. Thus, it is within the power of a 
court to usurp by implication the law-making powers of our state 
legislatures and of Congress. 

Laws Governing the Individual and Family. — Each state 
has complete jurisdiction over its own citizens within its borders, 
and of those residing or doing business within the state, with the 
single exception of those who violate the Federal law. 

Laws regarding property, inheritance, contracts, marriage and 
divorce are passed by the several states, irrespective of each other, 
so that the law of one state may and often does differ radically 
from similar laws in other states. A marriage legally contracted 
in one state may be held by the courts to be illegal in another 
state, and the same may be true of divorce. For such reason there 
are those who urge that the Federal government take over juris- 
diction concerning marriage and divorce, which, if done, would 
have to be through an amendment to the Federal Constitution. 



LEGAL STATUS OF THE FAMILY 383 

As state laws may be changed with the session of every state 
legislature one should endeavor to keep informed regarding all im- 
portant laws enacted from time to time, especially those that directly 
affect the individual and the family. 

In the absence of specific laws, decisions are made by courts in 
case actions are brought, and these decisions are usually based upon 
previous decisions or upon custom and usage and the principles of 
the so-called common law. 

Age. — Legal age is construed to be that period of life during 
which one is fully capable of exercising the rights and performing 
the duties of citizenship. This period is fixed by the laws of the 
various states, and when one has attained that age he or she is 
said to have attained his or her "majority" Prior to that time such 
persons are legally called "infants" 

In most states the legal age of the male is twenty-one years, 
and that of the female is eighteen years. There are exceptions, as 
may be seen by reference to the various statutes. Having reached 
this period of majority, the individual may exercise the legal rights 
of the citizen. Prior to that time, however, one may not make a 
will, or, except in special cases, make contracts, hold in one's own 
name, or dispose of, real estate without the consent of a guardian or 
without an order of court. Neither may one exercise the rights of 
suffrage until legal age has been attained. 

Infants. — In the United States, in most states, children can- 
not choose their own guardians until they are fourteen years old. 

The parents of a child, so long as living, are its natural 
guardians and cannot be dispossessed from acting in such a capacity 
without an order of court. In the case of incompetency, cruelty, 
neglect, insanity of guardians, and divorce of parents, the courts 
determine the guardianship of infants and minors concerned. 
The state is the real guardian of the child and possesses the sole 
power to delegate its powers of guardianship to others. 

As previously stated, "infants" cannot exercise any of the rights 
of citizenship, except through parents, guardians or through the 
courts. 

Age of Consent. — The age at which a female is supposed to 
be capable of discriminating between right and wrong in relation- 
ship with the opposite sex is called the "age of consent." This age 
is fixed by law and differs in the various states. The purpose of 
such laws is to protect immature girls by throwing the blame upon 



384 



THE BUSINESS OF THE HOUSEHOLD 



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386 THE BUSINESS OF THE HOUSEHOLD 

the male, increasing the penalty for the infraction of certain laws 
when the crime is against one below the age of consent. After 
that age each sex is considered equally culpable in specific cases of 
wrong-doing, unless extenuating circumstances are proved to have 
existed. 

In some countries the age of consent has been the marriageable 
age, which in turn has elsewhere been as low as thirteen years, 
but many of the states in this country have very properly raised 
the age of consent to eighteen years. 

Marriage. — Marriage expresses the contract by which the par- 
ties agree to unite, as well as the legal status resulting from the 
union of the contracting parties. 

The law fixes the rights of each member of the marriage con- 
tract and these Tights cannot be abridged, abrogated or altered in 
any important particular by any agreement made before or after 
marriage. 

One cannot enforce by law any promise of marriage; in other 
words, one cannot be legally compelled to marry, but suit may be 
brought for breach of promise. 

The customs and laws of foreign countries governing maTriage 
are often entirely unlike those in this country, if not directly in 
conflict. More than one innocent girl has married a titled for- 
eigner, or ordinary citizen of another country, only later to find 
that her marriage was not recognized in her husband's country. 

Each state has fixed an age for both the male and the female 
when marriage is considered legal, and, in most states, an age 
below which parental consent is necessary before a marriage can 
be legalized. 

For purposes of reference the foregoing table is given (pp. 384, 
385), which consists of a summary of the marriage laws in the vari- 
ous states. While these requirements of the various states for 
marriage are given, individuals contemplating marriage should first 
study the laws of the state of residence. 

License to Marry. — Young people should understand just what 
the law requires before marrriage can be consummated. Every 
state now requires a license to marry. In cities a special license 
clerk may be delegated to issue the license, but the license is 
usually issued at the county seat by a county official, usually the 
clerk of courts. No girl should consent to a marriage ceremony 
without first satisfying herself of the legality of the license, which 
she or her parents or guardian should examine carefully. 



LEGAL STATUS OF THE FAMILY 387 

Officials Empowered to Perform the Marriage Ceremony. 
— A clergyman in good standing, representing any church, a justice 
of the peace, a civil magistrate, such as a judge, are legally entitled 
to perform the marriage ceremony. Other officials in some juris- 
dictions have been so empowered, therefore, every one entering the 
marriage relation should be certain that the one chosen for this 
purpose is legally qualified to act. The state does not recognize 
the act of any church in the performance of the marriage ceremony 
unless such ceremony has been authorized by statute. 

Witness to Marriage. — Witnesses to a marriage ceremony are 
a valuable precaution and their signature should be attached to the 
certificate of the officiating clergyman or magistrate. 

Other Disabilities. — As shown in the Summary of the Mar- 
riage Laws of the various states, there are certain disabilities that 
bar one from wedlock. In some states first cousins may not marry ; 
in other states the black and white races may not inter-marry. 
Eecently, some states have enacted legislation requiring the physi- 
cal examination of the contracting parties and a certificate from 
a competent physician that they are free from certain diseases. 

Common Law Marriages. — The interchange of consent and 
the subsequent living together as man and wife have been called 
a "common law marriage," but American society properly looks 
with repugnance upon such unions and they have been made illegal 
in several states, as in Illinois. Similarly in New York, a mar- 
riage by a written contract, which must be signed in the presence 
of witnesses, and filed with the proper public official, has been 
substituted for the common law marriage, and is available if, for 
some reason, persons do not wish the usual marriage ceremony. 

States that still recognize common law marriages extend cer- 
tain forms of protection to the woman entering into such relation- 
ship, as well as to children born of such marriages. Just what 
rights a common law wife might have in the estate of her hus- 
band would have to be determined by the courts, and the legality 
of her children would probably have to be established in the same 
manner. 

Divorce. — Although a detailed study of divorce is out of place 
in a work of this character, every woman should be familiar with 
the rights the law gives her as a wife. 

Divorce changes the legal status of both husband and wife, 
which also means that the property rights of each undergo a change. 



388 



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390 THE BUSINESS OF THE HOUSEHOLD 

An annulment of a marriage is not divorce, but the pronouncement 
of a court as to the illegality of the marriage. Divorce is issued for 
cause recognized by the statute. 

A summary of the causes for divorce recognized by the various 
states is given on pages 388 and 389 for reference purposes : 

Alimony. — Alimony is money paid by the divorced husband 
for the support of the wife under order of the court. If the wife 
is proved to be the offending party in an action for divorce, courts 
do not usually allow her alimony. In only one state has alimony 
ever been awarded to a husband. During divorce proceedings the 
husband must support his wife and pay her attorney's fees, as well 
as his own, in addition to any alimony the court may award the 
wife, and this, regardless of which party brings the action, and 
in some states regardless of the wife's guilt. 

The Rights and Liabilities of the Husband. — Although each 
state makes its own laws governing the relationship and property 
rights of husband and wife, there are certain fundamental prin- 
ciples at common law upon which the courts have established cer- 
tain practices. 

Each state establishes the legal status of husband and wife, 
and, as a result, the laws of the various states pertaining to prop- 
erty rights of husband and wife are confusing. The facts set forth 
in this chapter show the general tendency of all such legislation, 
although there may be exceptions that obtain in some states. 

In this country the personal rights of the husband over the 
wife are very limited. The husband is the legal head of the family 
and it is his duty to support the family, although in a few states 
joint-responsibility is placed upon husband and wife. The hus- 
band has no rights of chastisement so far as the wife is concerned. 
The wife's domicile follows that of her husband. 

In case of personal injury to the wife by another, a husband 
may sue for loss of her services, which would probably be interpreted 
by the courts to also mean her companionship, and all that that im- 
plies. 

A husband is liable for the necessities of the wife but the con- 
struction of the word "necessities" is left to the interpretation of 
the courts. In numerous cases women of extravagant tastes and 
tendencies indulged in numerous luxuries by well-to-do husbands 
have been awarded by the courts support commensurate with the 
style and manner in which their husbands had previously main- 



LEGAL STATUS OF THE FAMILY 391 

tained them. The court, in fixing alimony or maintenance, takes 
into question the financial standing and ability of the husband 
and the need of the wife. 

Failure to contribute to a wife's support on the part of a hus- 
band who has left his wife without divorce is considered desertion, 
and the husband is liable to areest and punishment, according to 
the laws of the state in which the wrong is committed. In some 
states desertion is a crime and subject to extradition, while in 
other states, the husband's property may be attached and sold to 
satisfy the claims of the wife. 

In interpretation of the acts of the wife, the law takes into 
consideration the principle of agency; if the act of the wife is that 
of an agent for the husband, the responsibility rests upon the 
husband. 

The Rights and Liabilities of the Wife. — Legally, husband 
and wife are not one but separate entities. If the wife possesses 
property at the time of marriage it remains hers. The wife may 
acquire and hold property, both real and personal, and it is not 
subject to the husband's control or liable for his debts. A mar- 
ried woman, so far as property is concerned, has all the rights of 
an unmarried woman. She may carry on business, make contracts, 
sue and be sued and judgments may be entered against her as if she 
were single. 

In personal injury cases, action may also be brought in her 
favor for injury to her person, and the award becomes her sole 
property. 

Although a husband is considered liable for his wife's debts, 
such is not the case with the wife. She is not responsible for his 
debts, and his life insurance cannot be held for them after his 
death. All life insurance payable to the wife becomes hers at the 
death of the husband and it cannot be alienated on any claim against 
the husband's estate. 

Again, although a husband is liable for the support of his wife 
and children, a wife is under no legal obligation to contribute 
to her husband's support, regardless of the financial responsibility 
of either party. 

In some states a wife may enter into partnership with her hus- 
band and share in the profits of the business and yet not be liable 
to the creditors of the concern. 

If a husband and wife no longer live together, that fact does 



392 THE BUSINESS OF THE HOUSEHOLD 

not change the wife's claim upon the husband for support, so long 
as the marriage tie has not been broken legally. Although the 
wife may not be entitled legally to the support of the husband if 
she deserts him without cause, the interpretations of the courts gen- 
erally hold the husband responsible for the wife's necessities. 

Function of the Law Regarding the Family. — The perma- 
nency of the home depends upon the marriage relation and the 
future of the nation is dependent upon the maintenance of the 
home. The law has rightfully tried to safeguard the institution 
of marriage, and a study of the law pertaining to all that con- 
cerns the home should be the duty of every girl and woman. Every 
woman should be thoroughly familiar with the rights the law 
gives her, if for no other reason than that her ignorance may not 
be taken advantage of, consciously or otherwise. 

QUESTIONS 

1. Define the word "suffrage." 

2. Where are the laws made governing marriage, divorce and the inherit- 

ance of property ? 

3. What is the difference between the functions of Congress and those of 

the State Legislatures? 

4. Have the courts any direct law-making powers ? 

5. In what way do the courts exercise indirectly powers conferred only upon 

the State Legislatures and upon Congress? 

6. What is meant by "legal age"? 

7. What is the legal meaning of the term "infant"? 

8. Define the terms, "bigamy"; "polygamy"; "monogamy." 

9. What is meant by "alimony"? 

10. Write out briefly the more important legal rights and liabilities of the 
husband, and also of the wife. 

PROBLEMS AND DEMONSTRATIONS 

1. What is the age of majority in your state? 

2. Who in your state is empowered to perform the marriage ceremony? 

3. Who has authority to issue a marriage license in your county? 

4. Is a witness to marriage necessary in your state ? and how many ? 

5. Can women vote in your state ? If so, for what offices ? 

6. May first cousins marry in your state? 

REFERENCES 

Bayles, G. J., Woman and the Law. Century Co. 
Browne, I., Elements of Law of Domestic Relations. 
Moses, The Government of the United States. D. Appleton Co. 
Schouler, James, Law of Domestic Relations. Little, Brown Co. 
Wilson, J. L., Legal and Political Status of Women in the United 
States. Cedar Rapids, Iowa. 



CHAPTEK XXXI 
REAL ESTATE TITLES AND TRANSACTIONS 

The law governing the transfer and inheritance of real estate 
varies in different states, as has been already stated. It is not 
necessary for the average owner of real estate to be familiar with 
all of these laws, but there are certain fundamental facts that 
everyone should know. Such knowledge will be the best safeguard 
against unwise action with regard to property, for it will im- 
press one with the need of expert advice from the lawyer and real 
estate dealer, since the issues involved are of vital financial impor- 
tance to the family. 

Title to Real Estate. — In this country lands held by the early 
grants from foreign rulers became the property of the original 
states or colonies. When the Federal government was formed much 
of the land was transferred by the original states to the govern- 
ment. Out of this excess land, and other land secured by the gen- 
eral government by purchase and treaty, other state? have been 
carved, the government retaining certain lands in different states 
as its own property. 

Private ownership in this country has been derived either from 
the states or direct from the Federal government. Individual 
ownership means the free right to mortgage, sell and dispose of by 
inheritance or other means. Numerous transactions covering a 
single piece of real estate would soon complicate the title, and in 
order that an owner might prove his title, the various states have 
decreed that all real estate titles be recorded at the county seat of the 
county in which the property is located. The official having charge 
of such records is usually known as the Eegister of Deeds. 

The deed, mortgage or release or any document affecting the 
title of real estate should be recorded by the Eecorder or Eegister 
as a part of the county's permanent records. 

In the course of years, land that has been subjected to num- 
erous transfers, incumbrances and tax levies, will present a compli- 
cated record on the books of the Eegister of Deeds. To tell whether 
or not an owner has a good title, in time, becomes a question that 
can be correctly answered only by a competent lawyer, or one well 
versed in real estate law and practice. 

393 



394 THE BUSINESS OF THE HOUSEHOLD 

Abstracts of Title. — An abstract of title is a written docu- 
ment showing all of the transactions covering a piece of real estate 
that are on record in the office of the Kegister or Eecorder of 
Deeds, from the time the property was granted by the Federal or 
state government down to the present time. 

Abstract companies are usually licensed and bonded by the 
state in which they operate. They certify that the abstracts they 
have issued are true and faithful copies of all records covering 
the land in question, appearing on the books of the Eegister of 
Deeds, the Treasurer of the county and other county officials. 

This certification does not by any means indicate that the 
abstract company guarantees the title as either clear or sound. 
The abstract should be submitted to a competent attorney to pass 
upon the validity of the title. 

Guarantee Policies. — There are abstract and title trust com- 
panies that issue what is known as a Title Guarantee Policy, or 
an abstract of title together with a guarantee that the title is valid 
and free from all incumbrances. If a flaw should be discovered 
in the title of property covered by such a guarantee, the com- 
pany issuing the guarantee would be liable for any damage sus- 
tained thereby by the holder of the policy, up to an amount con- 
tracted for in the title guarantee policy. Such a policy is really 
a kind of title insurance. 

The Torrens System. — In 1857, Sir Eobert Eichard Torrens, 
then premier of South Australia, devised a system of registration 
of titles to land which, if generally adopted, would do away with 
the cumbersome and complex system now in use. It would take 
the place of the abstract systems now in vogue. 

Under this system, a title is examined and certified to by an 
official examiner, representing the state-at-large. An application 
is made to the proper court, and the official examiner's certification 
is attached to the application, which also names all parties in any 
way having an interest in the property in question. This takes the 
form of a complaint, the state acting as the defendant. A sum- 
mons is issued to every claimant, and if the interested parties can- 
not be found, it may be published. If a contest developes, a Hear- 
ing is granted and the court enters a decree either directing or 
refusing registration of title, subject, of course, to any incum- 
brances existing against the property in question. 

r A small tax upon the land registered goes to form an indemnity 



REAL ESTATE TITLES AND TRANSACTIONS 395 

fund, against which any person damaged by the registration may 
bring an action within a limited time. Once title is registered it 
cannot be annulled. Any further transfer of the property merely 
involves the surrender of the first certificate and the issuing of a 
new one. The cost of securing such a registration is low, but 
varies in different jurisdictions. 

There are many who strongly advocate this system. In new 
countries, in which transfers of real estate have been few, it would 
be comparatively easy to inaugurate this system, but in older settle- 
ments its adoption is slow. Illinois in 1897 was the first state 
in this country to adopt the Torrens System. Other states have 
adopted modifications of the system, among them Oregon, Cali- 
fornia, Minnesota, Massachusetts, Colorado, Washington and New 
York, but it is not compulsory in these states. In Illinois it is 
compulsory in estates of decedents, and in the Philippines in the case 
of public lands, and in Hawaii as to lands owned by corporations. 

Rights of Husband and Wife in Real Estate. — Every state 
has its own law establishing the rights of husband and wife to real 
estate, and every married person should be familiar with the prop- 
erty rights given them by the state. 

Some states require both the signature of the husband and the 
wife in the transfer of any realty, and it is the practice in all 
states to demand the signature of both parties irrespective of the 
law. 

The law of inheritance also should be looked up by every in- 
dividual who is apt to be the recipient of property through in- 
heritance. State law fixes the apportionment of property between 
wife and children, or father and children in case of the death of 
either mother or father. 

Eeal estate in which a minor owns a part interest cannot be 
disposed of until the minor attains legal age, unless by an order 
of court. 

Joint-Tenancy-Deed. — Some states permit the husband and 
wife to hold a piece of real estate in joint-tenancy. In such a 
case, if either party dies, the property belongs to the other party 
without probate or court proceedings, and it is not subject to 
division among other heirs of the deceased. 

Purchase of Property. — Before purchasing property one should 
first be satisfied that the title is perfect in every respect ; but there 
are other important factors to consider. In the first place, do not 



396 THE BUSINESS OF THE HOUSEHOLD 

trust to your own judgment or experience unless you are a real estate 
broker or lawyer. Employ experienced and expert help to pass upon 
all legal matters and questions of title. A few of the other factors 
mentioned are the following : 

Assessments and Taxes. — The seller of real estate is expected 
to pay all taxes due at the date of the sale, as they are an incum- 
brance on the property. 

In many cities, a lot is not only liable for street improvements 
in front of the property, but for the immediate vicinity. When pur- 
chasing real estate, one should see that the abutting and nearest 
streets are paved, that sidewalks are installed and that sewers have 
been completed. Assessments covering street improvements are 
usually levied so as to cover a long term of years. One should be sure 
that all such assessments have been paid in full, not merely to 
date, but covering the entire levy. Be sure and ascertain the area 
of assessment so that one may know exactly what are the liabilities 
attaching to the property in question. If street improvements have 
been made by private concerns one should find out if they have 
been accepted by the municipality. 

Colleges, universities, cemeteries and church properties are gen- 
erally exempt from taxation. This means that the area of taxable 
property is limited by the extent of such holdings. This being 
the case, the remaining property must bear the tax for the entire 
district. 

Legal Status of the Street. — A prospective purchaser of real 
estate should establish for himself the legal status of the street 
upon which his property abuts. There are such things as private 
streets which may never be opened by the authorities as public 
streets and which may even be closed, in which case the owner 
abutting thereon could not recover damages. 

It is just as important to ascertain the legal status of alley- 
ways and who is responsible for their condition. In some places, 
no provisions are made for alleys. Every lot should be provided 
with an alley, where there is an alley system, and with free access 
to the public highways. 

Public Grade. — The public grade of a street also sho.uld be 
investigated with reference to abutting property. One should see if 
any changes in grade are pending. Property on grade when pur- 
chased might be required to make expensive fills, or remove many 
cubic feet of dirt and rock, if the municipality should change the 



REAL ESTATE TITLES AND TRANSACTIONS 397 

grade of the street. Any such intention on the part of a corpora- 
tion should be disclosed before the purchase of property, if such 
intention exists. 

Other Factors to Consider. — Aside from legal and financial 
factors, one should endeavor to forecast the development of the 
neighborhood during the coming years. Are street car lines liable 
to be projected on the abutting street or within the neighborhood? 
Street car lines on residence streets are undesirable. Are there 
saloons in the neighborhood? Factories, shops or stores? Is the 
neighborhood apt to deteriorate or will it hold its own for a num- 
ber of years as a residence district? Will the property be likely 
to increase in value? These are questions that should be asked 
and seriously studied by every prospective purchaser. 

Through streets are generally considered more valuable than 
side streets, short thoroughfares and courts. One cannot be too 
careful in considering every feature of a real estate problem. In 
such cases, prevention is more than usually the best cure for -real 
estate ills. Be sure you are right before you go ahead and do not 
attempt to deal with expert problems without the aid of an expert. 

Mortgages, First and Second. — Mortgages have been dis- 
cussed under Investments (p. 344). A second mortgage is one 
given after and subject to a prior or first mortgage. If a second 
mortgage were foreclosed, the owner of the second mortgage would 
have to pay the first mortgage before he could become the owner 
of the property foreclosed. 

If a piece of real estate were incumbered by both a first and 
a second mortgage, and the first mortgage became due and the 
holder of the same wished to renew the first mortgage for another 
term of years, he could not release the original mortgage without 
endangering his interests. As soon as a first mortgage is released, 
an existing second mortgage on record takes its place and becomes 
a first mortgage or lien. Arrangements would first have to be 
made to release the second mortgage before the first mortgage could 
be released. 

If a piece of property were incumbered by both a first and a 
second mortgage, and the first mortgage were foreclosed, the act 
of foreclosure would obliterate the second mortgage, and the holder 
of the second mortgage would have no further claim against the 
property sold to satisfy the first mortgage. 

Foreclosure. — Foreclosure means the public selling of mort- 



398 THE BUSINESS OF THE HOUSEHOLD 

gaged property to satisfy a debt secured by a mortgage against the 
property. State laws regulate the procedure of foreclosure, which 
involves a judgment by a court. The proposed foreclosure is usu- 
ally advertised through the medium of a newspaper published in 
the county in which the property is located, and such advertisement 
must be continued for a definite time fixed by law, which is consid- 
ered as a notice served upon the owner of the property or by other 
methods provided by law. The description of the property, the 
name of the owner, the amount of the debt and the name of the 
holder of the mortgage, together with the amount of accrued interest 
and unpaid taxes are usually made a part of such notices. A date is 
fixed for the sale, and on that date the sheriff of the county usually 
offers the property at public sale, and knocks it down to the highest 
bidder. The record of the sale is filed, and then the owner of the 
property is given a definite time in which he may redeem the prop- 
erty by paying the amount the property was sold for, plus the cost of 
the"feale, and any taxes paid since the date of the sale by the one who 
bid the property in. 

Release of Mortgage. — If a real estate mortgage has been 
paid the owner of the mortgage must execute a release of mortgage, 
and this release must be filed in the office of the Register or Recorder 
of Deeds in order to clear the records and title. 

Recording Fees. — The law fixes a price that the register of 
deeds may charge for recording each instrument such as a deed, a 
mortgage or release. Custom dictates as to who should pay filing 
fees, whether buyer or seller. 

Methods of Conveyance. — In disposing of real estate there 
are two forms of deeds that may be issued, the warranty deed and 
the quit- claim deed. 

The Warranty Deed: This deed is what its name signifies, a 
warrant from the seller to the purchaser that the title being trans- 
ferred is perfect and valid, and free from all claims. This is the 
form that every purchaser should insist upon securing from the 
seller. If a piece of real estate is cumbered by a mortgage of a thou- 
sand dollars, for instance, and the seller or grantor is selling the 
property subject to that mortgage, in which case the purchaser 
agrees to assume and pay the mortgage, a clause is usually inserted 
in a warranty deed, reading about as follows: "Subject to a mort- 
gage of one thousand dollars, given to John D'oe on the 26th day 
of December, 1916." 



REAL ESTATE TITLES AND TRANSACTIONS 399 

By the terms of the warrant the property is guaranteed free from 
incumbrances with the single exception stated. 

Quit-Claim Deed: A quit-claim deed is also what its name 
indicates, a release, or, in this country, a transfer of whatever inter- 
est the grantor may possess in the property, to the purchaser. The 
grantor guarantees nothing but the transfer of whatever interest 
he may have in the property. The title may be at fault ; the prop- 
erty may be subject to mortgages, judgments and unpaid taxes, 
and under such a deed the purchaser could not recover for such 
liens from the grantor. 

Many unsuspecting persons who have attempted to act upon 
their own judgment and thus dispense with the counsel of experts 
or lawyers have been subjected to loss by purchasing property on a 
quit-claim deed. 

Parties to a Conveyance. — The seller is known as the grantor; 
the purchaser as the grantee. The conveyance of a homestead 
should be signed by both husband and wife, if both are living, even 
if the law of the state does not require it. A widow, a widower, a 
bachelor or a spinster in conveying real estate usually states the 
fact in the body of the conveyance, as "John Smith, a widower," 
or "Mary Smith, a spinster," or "John Jones, a bachelor." This 
is done to avoid question in regard to a possible interest in the prop- 
erty derived from the fact of relationship and inheritance. 

Two witnesses are generally required to the signature attached 
to a real estate conveyance. The law in each state regulates this, 
as well as other factors involved. An affidavit is also required, by 
which the grantor or grantors swear before a notary public to their 
signature or signatures and to the effect that the transfer is "their 
voluntary act." 

Recording Conveyances. — Before title is actually perfected, 
a deed must be recorded with the register of deeds at the county 
seat. It is not the deed or article of conveyance in itself that con- 
summates the sale, but the recording of the conveyance. Swindlers 
have been known to have sold a piece of real estate to two different 
parties. The one depositing his deed with the register of deeds first 
would be the one recognized by law as the owner of the property, 
even though the deed given the other party bore an earlier date than 
the one deposited or recorded with the Tegister of deeds, and the 
earlier purchaser could only secure his rights by a court action. A 
deed might be held by the grantee while the title on record would 



400 THE BUSINESS OF THE HOUSEHOLD 

still show the property to be in the name of the grantor. In this 
case, it would be possible for the grantor if dishonest to mortgage 
the property or otherwise dispose of it, as the title still stands in 
his name. 

Of course, all such transactions are fraudulent, but it places 
the proof of fraud upon the grantee or purchaser, and this means 
delay, suits in court and much expense, with possible loss of the 
property. 

Liens. — An incumbrance on real estate is a lien. A real estate 
mortgage, taxes and assessments due and court judgments for debts 
are all liens, but the term is more specifically applied to claims filed 
against property, either real or personal, for work performed, gen- 
erally in the erection of a building. In such cases it is known 
as a "mechanic's lien/-' 

As in the case of other liens, a mechanic's lien in order to be 
effective and legal must first be filed in the office of some county 
official designated by the state. In some states this official is the 
register of deeds; in others, the county or the town clerk, or the 
clerk of the district or other court. 

In purchasing property, especially newly erected buildings, it is 
necessary to ascertain if all contractors and workmen engaged in 
erecting the structure have been paid in full for their work. As 
the law in different states gives the contractor and sub-contractor 
different periods of time in which to file a lien against property, it 
is not always possible to tell from the public records whether or not 
a lien is pending. 

One should find out what this period of time is for the state 
in which the property is located. If the building has been com- 
pleted and the term fixed by law for the filing of a lien has expired, 
and there is no record with the proper county official of a lien, the 
purchaser is safe ; otherwise he should demand of the seller receipts 
in full from all contractors and workmen for work done on the 
structure. 

In some states only the principal contractor may file a lien ; in 
some both the principal and the sub-contractor ; in others, in addi- 
tion to the foregoing, laborers and those who have supplied ma- 
terials, also farm laborers. 

The period in which liens must be filed varies in different states 
from thirty to one hundred and twenty days after completion of the 
work. After a lien is filed suit for the recovery of the amount of 



REAL ESTATE TITLES AND TRANSACTIONS 



401 



the lien must be started. The law also fixes the time after the filing 
of the lien in which suit must be brought, if at all. If suit is not 
filed within this period the lien no longer exists. This period for 
bringing suit varies from twenty days to six years. 

PERIOD WITHIN WHICH MECHANIC'S LIEN MUST BE FILED 

OR SUIT STARTED 



Time 


State 


20 days 


Rhode Island 


3 months 


California, Idaho, Maine, Massachusetts, Missouri, New 




Hampshire, Vermont 


6 months 


Alabama, Arizona, Colorado, Mississippi, Nevada, North 




Carolina, Oregon, South Carolina, Virginia, West 




Virginia, Wyoming 


8 months 


Washington 


15 months 


Arkansas 


1 year 


District of Columbia, Illinois, Indiana, Kansas, Kentucky, 




Michigan, Minnesota, Montana, New Jersey, New 




Mexico, New York, Tennessee, Utah, Wisconsin 


2 years 


Connecticut, Nebraska 


5 years 


Maryland, Pennsylvania 


6 years 


Ohio 



Judgments. — A judgment is a conclusion of a court as a result 
of a suit, which judgment becomes a lien against real estate owned 
by the person against whom judgment has been taken. If a mechan- 
ic's lien is filed with the legally constituted authorities it then 
becomes a lien against the property. Suits for any debts held by 
a mechanic or contractor or any one else may be brought and they 
may become judgments. 

If real estate against which a judgment is filed should be sold 
part of the proceeds of the sale would be taken by the court to 
satisfy or pay the judgment. Lenders would not accept a mortgage 
against a piece of property upon which there was a judgment filed. 
The judgment would have to paid first. 

Before purchasing property one should have the records searched 
for judgments, which should be paid and satisfied by the owner 
before the sale is consummated. For judgment notes, see page 344. 



QUESTIONS 

1. What is a lien? a judgment? 

2. What is the difference between a Warranty and a Quit-Claim Deed? 

3. What is an abstract of title? a Guarantee Policy? 

26 



402 THE BUSINESS OF THE HOUSEHOLD 

4. Explain the purpose of the Torrens System. 

5. If a mortgage has been paid, what step is necessary to clear the title? 

6. What is a second mortgage? 

7. If you held a first mortgage against a piece of property for $1,000 and 

the owner subsequently placed a second mortgage upon the property 
for $500.00 and the latter come due, would your interests be im- 
periled ? 

8. If the case were reversed and you held the second mortgage and the 

first mortgage became due, would your interests be imperiled? 

9. What is a Joint-Tenancy Deed? 

10. Does your state provide for joint-tenancy? 

11. What factors should be considered before real estate is purchased? 
What is meant by the terms "grantor" and "grantee" ? 



12 



13. What is a "mechanic's lien"? A judgment? 

PROBLEMS AND DEMONSTRATIONS 

1. Procure a copy of a Warranty and a Quit-Claim Deed, and fill it out 

to John Doe. 

2. Can the homestead be disposed of without the signature of both hus- 

band and wife ? 

3. When are taxes due in your city, town or county? Where would you 

pay your taxes? 

4. Who is the Recorder of Deeds in your county, and where is his office 

located ? 

5. If possible, some member of the class should borrow an abstract of 

title and bring it to school for the inspection of the students and for 
an explanation of the isame ; or better, perhaps, a representative of a 
local abstract company, or of a real estate firm, may be willing to appear 
before the class and explain such a document. 
G. Is it necessary for both husband and wife to affix their signatures to 
a real estate deed in your state? To a real estate mortgage? 

REFERENCES 

Hardy and Field, Insurance: Real Estate. Alexander Hamilton Insti- 
tute, New York City. 

Practical Real Estate Methods for Broker, Operator, and Owner, 
West Side Y. M. C. A., New York City. 



CHAPTEE XXXII 
INHERITANCES AND WILLS 

There are few legal subjects as important to the average indi- 
vidual as the law that governs property rights. If a woman marries 
possessing property of her own, her marriage in various ways affects 
the status of her property, and if her husband possesses or subse- 
quently acquires property, she acquires therein new property inter- 
ests. The death of either husband or wife also changes property 
relations. The interests of children in the estates of their parents 
are vitally important matters with which everyone should be 
familiar. 

Two Forms of Property. — In the study of taxes it was shown 
that there are two general classes of property: real estate, which 
includes lands and buildings, and personal property, which includes 
movable property. 

Estates. — Concerning real property an estate consists of the 
right or ownership one possesses in land. Such estates are of two 
kinds : Fee simple, or one that the owner may dispose of during his 
life, or in the event of his death, which descends to his heirs if he 
dies intestate, or without a will. This form of estate is also known 
as an " estate of inheritance/' 

The other form of estate is called an "estate not of inheri- 
tance " or a " life estate " under which one may hold the title to land 
during the time of one's life, or for a definite term of years, in which 
case it is spoken of as a " leasehold estate. 3 ' Such estates end with 
the death of the holder, as they are not subject to inheritance as 
in the case of an "estate of inheritance!' 

Lineals. — This term is applied to the direct descendant of a 
person, such as children and grandchildren, or to father, mother and 
grandparents, if there are no descendants. 

Collaterals. — This term is applied to persons not in a direct 
line of descent, as are lineals. They consist of brothers and sisters, 
nephews and nieces, half-brothers and sisters and their children. 

Intestate. — One who dies without a will is said to have died 
intestate. In such an event the property of the deceased would 
descend to surviving lineals, or if there were none such to surviving 
collaterals. 

403 



404 THE BUSINESS OF THE HOUSEHOLD 

Escheat. — If a person of property dies without a will, if no 
surviving heirs can be found, the property reverts to the State. If 
a Public Administrator does not exist, the Probate Court or a court 
acting in that capacity in such a case, appoints an administrator 
for the estate. It is his duty to make an inventory of the estate, 
pay the just obligations of the deceased out of the estate, and adver- 
tise for legal heirs of the deceased. If the latter cannot be found, 
the property of the deceased escheats to the state. 

Administrator. — This term is applied to the person appointed 
by the proper court to administer, or settle, the estate of one who 
dies without a will or " intestate." In case a deceased leaves a will 
and appoints an executor who fails to act the court appoints an 
administrator with the will annexed. The feminine form is 
administratrix. 

Executor. — This term is applied to the one appointed by a 
will to administer or settle an estate in case of the death of the 
testator. The feminine form is executrix. 

Testator. — This term is applied to a man who makes a will. 
The feminine form is testatrix. Testate means having died leaving 
a valid will ; it is the opposite of intestate. 

Dower. — Dower is a life estate of either wife or husband in the 
real estate of the other, after that other has died intestate. It con- 
sists of one-third of the rents and profits of said real estate for the 
lifetime of the survivor. 

Will. — A will is the formal disposition of one's property, made 
as prescribed by law, and taking effect at the death of the testator 
or testatrix. 

Non-cupative Wills. — This term is applied to an oral will. 
The laws of the various states differ in regard to oral wills, but 
they obtain only in relation to personal property, or if by reason 
or extremity one is unable to make a written will. They must, 
however, be reduced to writing within a definite time fixed by law, 
after the death of the testator. The tendency of the courts is to 
admit Non-cupative Wills to probate when supported by incontro- 
vertible testimony of proper witnesses. 

Codicil. — A formal and written document intended as an amend- 
ment to a will made during the lifetime of and by the maker of 
the original will. By such a document the maker of a will may 
later change the terms of the same, revoke them or add to them, 
but it must be executed with the same formalities as the original will. 



INHERITANCES AND WILLS 405 

Probate. — At death, a person's will is presented for probate; 
that is, the proper court passes upon the legality of the will. If a 
bond is required by the executor it must be approved by this court. 
If no executor has been appointed, or if he refuses or fails to act, 
this authority appoints an administrator with the will annexed. 
The probating court has authority to investigate and pass upon the 
distribution of the estate made by the administrator or executor, 
and to- declare the estate properly closed or administered. 

In order to understand the distribution of property after the 
death of the owner, it is essential that one should become acquainted 
with the terms that have been defined. 

It must be remembered that each state has sole jurisdiction over 
the distribution of the property of a decedent, within that state. . 

In general, the principle governing inheritances is similar in all 
states, although slightly varying. It should be remembered that the 
first principle to be considered in inheritances, where the deceased 
is married, is the right of dower. Whether an estate be testate or 
intestate, the rights of dower obtain unless the testator gives certain 
property to a surviving spouse in lieu of dower. The law of each 
state determines the dower rights of husband and wife, which rights 
may be enforced whether or not the decedent leaves a will. In case a 
will is left, either husband or wife, may elect to take the share of 
the property allowed them by law, as " dower " the same as though 
the decedent left no will, rather than to accept the provision made 
for the husband or the wife in the will by the decedent. On the 
other hand, dower rights may be waived, and the provisions of the 
will accepted instead. 

Distribution of an Intestate's Property. — Lineals. — 

First: To intestate's children in equal parts. 

Second: The descendants of a deceased child take the share of 
their deceased parents. 

Collaterals. — Where there is no surviving spouse and no chil- 
dren nor descendants of children, inheritance runs as follows : 

To parents, brothers and sisters and their descendants, allowing 
to a parent a brother or sister's share. 

The statutes of the various states are different on this subject, 
each from the other. The student should be content with a study of 
fundamentals, so far as this subject is concerned, and look to the 
statutes of the state of residence for particular and more specific 
information, and should determine the exact line of descent that 
prevails under the law of the state in which one lives. 



406 THE BUSINESS OF THE HOUSEHOLD 

Joint-tenancy. — This has been discussed in another chapter 
(p. 395), but it is mentioned in this connection in relation to wills. 
If a piece of property is held in joint-tenancy by husband and wife, 
at the death of either party the property vests in the other party 
without probate or other legal proceedings. Property so held, can- 
not be diverted by either party by will. The husband, for instance, 
could not will it or any part of it, as his interest in the property 
ceases at his death. 

Revocation of a Will by Law. — If a single woman makes a 
will and subsequently marries the will is automatically revoked or 
annulled. If a man makes a will and subsequently marries it is 
revoked to the extent of allowing the wife and the children, if any, 
the statutory rights given them by the state in case of intestacy. 

The Making of a Will. — The laws of each state specifically 
say what constitutes a legal or valid will, but there are general prin- 
ciples that are common to all states. 

Anyone of legal age and of sound mind may make a will. It is 
not absolutely necessary to have a lawyer draw up a will, but if there 
is any considerable amount of property to be disposed of, or if com- 
plex situations or relationships are involved, one should not attempt 
to draw up and execute one's own will without the advice and 
assistance of a competent attorney. 

The language of a will should be as simple and as direct as pos- 
sible, and great care should be exercised to choose words and phrases, 
and to punctuate in such a way that no more than one meaning may 
be attached to a word, phrase ot sentence. 

There are certain words and phrases often used in wills, such 
as an opening declaration that the testator is "of sound mind" 
that are not legally necessary, but there are other words and phrases 
that should be used for the sake of certainty and to insure the 
carrying out of the testator's wishes. In order to bring out these 
necessary and desirable parts of a will, a sample will is given as 
follows, with the vital points italicized : 

I, John Doe, do make this my last will as follows: 
All my estate, both real and personal, I devise and bequeath to 
my wife, Elizabeth Jane Doe, for her own benefit and use forever, 
and I hereby appoint her my sole executrix, without bonds, and 
with full power to mortgage, lease, sell, or in any other manner to 
dispose of the whole or any part of my estate. 
Dated January 20, 1917, John Doe (Seal). 

at Chicago, Illinois. 



INHERITANCES AND WILLS 407 

Subscribed, sealed and published, and declared by John Doe, the 
testator named above, as and for his last will, in presence of 
each of us, who at his request, and in his presence, and in the 
presence of each other, at the same time, have hereto subscribed our 
names as witnesses this 20th day of January, 1917, at the city of 
Chicago, Illinois. 

Mary J ones > 2126 Prairie Ave., Chicago, Illinois. 

John Hart, 4126 Lincoln Ave., Chicago, Illinois. 

James Montgomery, 1876 Calumet Ave., Chicago, Illinois. 

Identity of the Will. — The statement over his signature, prop- 
erly witnessed, that " I, John Doe, do make this my last will " is a 
written acknowledgment that the document is the testator's will. 

With or Without Bonds. — In the illustration above, the wife 
has been appointed executrix without bonds, which does away with 
any necessity of calling upon friends or upon a surety company to 
furnish bonds, as a guarantee that as executrix she will faithfully 
carry out the devises and bequests of the will. If the words " with 
bonds " had been written in, the executrix of course would be com- 
pelled to furnish such security. If both phrases were left out, the 
executrix would be compelled to give bond. 

Power to Dispose of Property Willed. — The phrase in the 
above will giving the executrix power to dispose of the property in 
any manner desired, means exactly what it says and frees the execu- 
trix from any claim that can take the property out of her hands. 

Witnesses. — Most states require only two witnesses to a written 
will, but as a few states require three witnesses, it is better to have 
that number, and for the same reason the word " seal " should be 
used as some states require it and others do not. 

The witnesses must not in any way be interested in the terms of 
the will, or be mentioned as beneficiaries in the will. 

In the presence of the witnesses the testator, having signed the 
will, is supposed to state that " This is my will," following which 
the witnesses affix their signatures and addresses. Even though 
the witnesses should die before the testator the will would still be 
legal. 

If possible, a will should be made and signed on one sheet of 
paper, but if this is not possible, the various sheets constituting the 
will should each be identified as a part of the will, but a will of 
such a length should only be entrusted to a lawyer to draw up. 

Bank Deposits and Safety Deposit Boxes. — Unless a bank 
account is in the name of both husband and wife and subject to the 



408 THE BUSINESS OF THE HOUSEHOLD 

check of either party, in case of the death of one or the other there 
may be some question as to whether the money on deposit can be 
withdrawn by the surviving party without legal proceedings. For 
this reason, as stated in previous chapters, the family bank account 
should be of a joint nature and in the name of both parties, subject 
to the check of either party without the signature of the other party. 

The same principle holds in relation to the rental of a safety 
deposit box. If not in the name of both husband and wife, at the 
death of the party in whose name the box was rented, certain diffi- 
culties might arise that would delay the surviving party in gaining 
access to the same. In order to avoid any possibility of such a state 
of affairs safety-deposit boxes should be rented in the name of both 
husband and wife, subject to the entry of either party at any time. 

Minor Heirs. — Eealty left by will or law to minors may not 
be disposed of by guardians or executors or administrators, unless 
empowered to do so by an order of court. This would also be true 
of property left jointly to two or more individuals, one of whom 
might be of age and the other a minor. Unless the court empowers 
the sale, the property must be held in trust until the youngest minor 
interested in it becomes of legal age. The property may be rented 
or leased or operated, the expense of operating and administrating 
coming out of the proceeds. Part of these proceeds, not to exceed 
his share, may be used for the education and support of the minor 
heir. All such expenditures would be deducted from the total pro- 
ceeds at the final distribution after the minor had attained his 
majority. 

Trust Companies as Executors and Guardians. — Trust com- 
panies are empowered to act as executors and administrators and 
guardians and in the absence of near and trusted relatives, it is wise 
to appoint such a company as the executor of an estate. 

QUESTIONS 

1. If your father and mother are living and they possess real estate, as 

well as personal property, and if the father should die without a 
will, what would be your share of the estate? 

2. What would be your mother's share? 

3. If you possessed property, were of age and had no heirs, how would 

your property be disposed of at death, if you left no will? 

4. What official in your county has charge of estates? 

5. If you possessed real estate, and later married, would your husband 

have any rights to that property? 

6. If you married, what rights would the law of your state give you in 

the property of your husband? 



INHERITANCES AND WILLS 409 

7. What are the essential and necessary principles or features that must 

be embodied in a valid will? 

8. If a person died leaving a will what legal steps must be taken by the 

surviving heirs? 

9. Suppose a parent died, leaving a will by which three children are 

given an equal and undivided interest in a piece of real estate. If 
two of the children are of age and the third one a minor, what dis- 
position may be made of the property? 

10. What is the relation of a Trust Company to estates? 

11. Describe the meaning of "joint-tenancy." 

12. What is meant by "dower rights"? 

13. What one word is to be used in a will that includes real-estate? Per- 

sonal property? 

PROBLEMS AND DEMONSTRATIONS 

1. Make a list of your living relatives, classifying them in relation to 

your father, if not living to your mother, as follows: First, lineaJ 
descendants; second: collateral heirs. 

2. Who is the Probate Judge in your county, or the Public Administrator 

if there is one? 

3. At the first opportunity, clip from a local paper a notice of the pro- 

posed settlement of an estate by an administrator? 

4. What do "dower rights" consist of in your state? 

5. Using fictitious names, make out a legal will disposing of a house and 

lot supposed to be located in your community, the household furni- 
ture of the home, money in the bank, and personal property. 

6. Having made out such a will, underscore the principal parts of the 

will that must be part of the document in order to make it legal. 

7. Is there a Trust Company in your community? If so, name it. 

REFERENCE 
Schouler, James, Law of Wills and Administration. Boston Book Co. 



CHAPTEK XXXIII 

LAWS WHICH AFFECT THE FAMILY 

In addition to the laws governing the legal status of the family, 
real estate and its transfer, and those pertaining to inheritance and 
wills, which have been treated in the three preceding chapters, there 
are various general laws in all states that bear directly upon the 
interests of the home. A few of the more important principles 
recognized by the laws of most states, that affect family life, will be 
briefly reviewed in this chapter. 

Written vs. Oral Contracts. — All contracts, for the sake of 
certainty, should be written, but certain contracts must be written 
to be legal. The latter are generally contracts pertaining to the sale 
or leasing of real estate, but in some states contracts for the sale 
of merchandise for a consideration over a specified sum must be 
written and signed by both parties thereto. An oral contract with 
the exceptions noted is legal. The difficulty of producing competent 
and reliable witnesses to prove oral contracts might urge everyone 
to have his contracts in convenient form for proof. 

Illegal Contracts. — Contracts and agreements that are opposed 
to the general welfare of the community are considered to be against 
public policy and are illegal, void and cannot be enforced. 

Incompetent Parties to a Contract. — Legal contracts may not 
be made with persons of unsound mind, with drunkards, infants or 
minors, or alien enemies. Contracts with married women may be 
subject to certain restrictions in certain states. 

The Signature o Disabled or Illiterate Persons. — If one, for 
any reason, is unable to sign his name, he may make his " mark " 
in place of his signature, which must be witnessed, in which event 
it will legally stand for or take the place of his signature. Such a 
" mark " should be made and witnessed as follows : the illiterate or 
disabled one making the sign of a cross, and the witness writing 
his name : 

Witness to mark: 

Henry Jones, John 

10W. 7th St., 

Chicago, 111. U1S X MarJc 

Doe 

The address is simply for identification. 
410 



LAWS WHICH AFFECT THE FAMILY 411 

Usury. — Each state fixes a legal rate of interest which may be 
charged on indebtedness. In many states this rate is 6 per cent. 
An open account may be due, and in suing to recover the amount of 
the same, the creditor may ask that interest be paid on the debt. 
If interest was allowed, not being agreed upon between debtor and 
creditor, in the first place, it would be fixed at the legal rate. Most 
states also allow a greater rate of interest if mutually agreed upon by 
contracting parties in writing. In some states this contract rate is 
12 per cent, per annum. Interest charged in excess of the legal rate 
is called " usury ." A penalty usually attaches against one who 
charges usurious rates of interest; if usury is proved, all that can 
be collected is the principal of the debt ; all interest being forfeited 
as a penalty. 

Gambling. — Contracts based upon gambling, chance or hazard, 
are void in most states. This includes stock-market gambling, bet- 
ting and games of chance. In such states, one cannot be sued for a 
gambling debt or made to pay it. If money is still in the hands of 
a stake-holder to a gambling contract, it may be recovered. The 
Federal government has declared lotteries inimical to public wel- 
fare and the Post Office Department will not allow anything per- 
taining to lotteries to pass through the mails. 

Contracts Made on Sunday. — Secular contracts are illegal in 
most states if made on Sunday, but a contract so made and intended 
to benefit charitable or religious objects or to preserve health, 
life or property, can be enforced. However, a contract made and 
executed on Sunday would probably not be interfered with by the 
courts. 

Saloons and Drunkards. — In states where the sale of liquor is 
permitted, laws may prohibit saloons within certain districts or 
within definite distances of schools and churches. Some states also 
hold a saloonkeeper responsible under specific conditions for the 
consequences resulting from the sale of intoxicants to confirmed 
drunkards. A member of the family, or a friend of the family, may 
notify a saloonkeeper not to sell intoxicants to a man declared to 
be a drunkard. The saloonkeeper is required to post in a con- 
spicuous place in his saloon the names of all such men. If he 
continues to sell intoxicants to them, any member of their families 
may bring suit to recover damages from that saloonkeeper. 

Selling liquor to minors is, of course, an offense, and in many 
states it is against the law to sell or to give cigarettes to minors. 

Caveat Emptor. — This is a Latin phrase meaning "Let the 



412 THE BUSINESS OF THE HOUSEHOLD 

buyer beware/' In other words, the law presumes that the buyer 
will exercise ordinary judgment and intelligence in making a bar- 
gain and take due precaution against being cheated or defrauded. 
The buyer is under duty not to depend entirely upon the statements 
of the seller, but to protect himself by verifying, as nearly as pos- 
sible, the facts set forth by the seller in the contract and all of the 
circumstances surrounding the transaction. If the buyer fails to 
do this and suffers damage, he must bear such loss. 

Instalment Leases. — An instalment lease is a contract to sell 
an article which is to be paid for upon the instalment plan, which 
instalments are considered as rent for the use of the article. When 
a certain number of these instalments amounting to a definitely 
stated sum have been paid, the ownership in the article passes to the 
lessee, but until then title to the article remains in the lessor, (For 
Real Estate leases, see p. 126.) 

Real Estate Mortgages. — These have been discussed on pp. 
344 and 397. 

Chattel Mortgages. — A chattel mortgage is one given upon 
chattels, or personal property, to secure the payment of a chattel 
mortgage note as this evidence of indebtedness is sometimes called. 
A chattel mortgage must be recorded with the proper official in 
accordance with the statute of the state. Foreclosure can be effected 
by complying with the terms of the mortgage if they are in harmony 
with the statute. 

A chattel mortgage is foreclosed in the same way as a real estate 
mortgage (p. 397) ; if chattels are sold at foreclosure, the debtor 
has no further recourse and may not redeem the property. 

Notes — Judgment Notes. — Promissory notes have been de- 
scribed on p. 342. A judgment note is a note in which the signer 
"confesses judgment." In case such note is not paid the holder 
is entitled to a judgment against the maker without notice, but such 
judgment must be entered by a court. For judgments, see p. 344. 

Exemptions. — Each state allows its citizens certain property 
exemptions against judgments or claims for indebtedness. If a 
writ of execution was issued against one's personal property to 
satisfy a debt, the individual could claim the exemption of prop- 
erty of a value equal to the exemption allowed by law. A home- 
stead, up to a certain valuation, is commonly exempted from 
judgment. This is done to prevent the debtor from becoming a 
public charge upon the community. A debtor may waive his rights 
of exemption. 



LAWS WHICH AFFECT THE FAMILY 413 

Maturity. — -The date an obligation is due is called the date of 
maturity. Instruments that fall due on Sunday or holidays, and in 
some states on Saturday, do not mature until the following business 
day. If the following Monday is a holiday and a note falls due the 
previous Sunday, its maturity would be the following Tuesday. 

Days of Grace. — Three days after the maturity of a note is 
generally allowed for the payment of same, before legal action can 
be taken. If the law allows no " days of grace " payment is due 
at maturity. 

Replevin. — This is an action brought to recover personal prop- 
erty wrongfully taken or held. A writ is issued by the proper court, 
the property is then returned to the claimant, pending a suit to 
determine the ownership of the same. If the judgment is adverse 
to the claimant the property is returned to the defendant. 

Garnishment. — This is a term applied to the attachment of 
one's wages, salary, or credits. The exemption laws usually allow 
a debtor a minimum sum for the support of his family, which sum 
cannot be made subject to garnishment. 

Statute of Limitations. — Each state fixes a limit of time, after 
which outstanding debts cannot be collected by legal process. For 
instance, an ordinary debt in some states under an oral contract 
cannot be collected by law after the expiration of five years from 
the time the debt became due. If the debt were evidenced by a 
book account, the period would be dated from the date of the last 
entry. If the debt was evidenced by a contract under seal, such 
as a real estate mortgage, the period of limitation would in some 
jurisdictions be twenty years from the maturity of the mortgage. 

Barred Claims May be Revived. — If a claim has been out- 
lawed, as it is called, by the statute of limitations, it may be renewed 
automatically by a new promise to pay by the debtor, given in the 
form of writing, or if the debtor unwittingly or otherwise makes a 
partial payment upon the principal or interest, the debt is renewed, 
and the statute of limitations will then run from the date of such 
promise or of such payment. 

Property Restrictions. — Some cities and states have laws regu- 
lating the heights of buildings. Again, buildings of three stories 
or more may be required to be equipped with fire-escapes. In many 
places building-lines are established, and new structures may not 
be erected beyond such a line. As an illustration, the residence 
building-line may be twenty-five feet from the front of a lot. If a 
new structure were to be erected on an adjoining lot, only ten feet 



414 THE BUSINESS OF THE HOUSEHOLD 

from the front of the lot, it would interfere with the view and cut 
off light and air from the adjoining structure. To prevent this 
possible infringement of rights building-lines have been established 
in certain jurisdictions. A zone system has been advocated for 
cities by which definite zones or localities may be reserved for resi- 
dence or for factory purposes. 

The establishment of such a system would have to be brought 
about through legislative enactment. As conditions now exist in 
most cities there is nothing to prevent the gradual encroachment 
of factories and stores upon residential districts, which encroach- 
ment might greatly depreciate the value of property in such locali- 
ties. Under the zone-system, factories, warehouses, storage plants 
and wholesale stores would be restricted within definite boundaries. 

Some states permit two-thirds of the property owners in a city 
residence block by petition to the city council, to secure the establish- 
ment of a restricted residence block. 

Public Bill-boards. — The Supreme Court has recently upheld 
a law providing that advertising bill-boards may not be posted in 
residence districts without the consent of the majority of property 
owners in the neighborhood. This decision will do much to stimu- 
late an interest in the beautification of towns and residence districts, 
as unsightly bill-boards long have been a detriment to property 
values. 

A Trust Deed vs. a Mortgage. — A Trust Deed is a real estate 
mortgage, but in place of the mortgage running to a Mortgagee, it 
is made out to a Trustee, who is generally a representative of the 
party loaning the money. 

The Trust Deed conceals from the borrower the name and 
address of the lender, which makes it difficult for a prospective bor- 
rower to come in contact with private individuals who have money 
to loan and perhaps at a less rate of interest than would have to 
be paid through a broker, who also charges the borrower a com- 
mission for his services, usually two per cent, of the amount of the 
principal. Doubtless many lenders would be glad to invest their 
money in first-class mortgages at a fair rate of interest, without 
a commission, if they could come in contact with those who need to 
borrow. 

For this purpose, if for no other, the form of the trust deed 
should be so amended as to make it compulsory to state in the body 
of the instrument the name and address of the real lender or pur- 
chaser of the same, and such information should be supplied to the 



LAWS WHICH AFFECT THE FAMILY 415 

borrower. Anything which serves to bring borrower and lender 
together should be encouraged, and that which seems to cover up 
the identity of the lender from the borrower and public should be 
condemned as inimical to public policy. 

QUESTIONS 

1. What is meant by gambling? Is playing cards for prizes in private 

homes gambling? Is a lottery of any kind gambling? 

2. Is a contract made on Sunday void in your state? 

3. What is meant by the phrase "caveat emptor"? 

4. What is usury? 

5. What is meant by an "incompetent party"? 

6. What is the difference between a real estate and a chattel mortgage. 

7. What is meant by "foreclosure"? 

8. Must mortgages be recorded ? 

9. When does personal property purchased on an instalment lease belong 

to the purchaser? 

10. What is meant by the "maturity" of a note? 

11. What is a "judgment"? 

12. What is meant by "replevin"? 

13. What is meant by "garnisheeing a claim"? 

14. How may a barred claim be revived? 

15. How may an illiterate or disabled person affix a legal signature? 

16. What is a mortgage? 

17 What is the difference between a mortgage and a trust deed? 

"PROBLEMS AND DEMONSTRATIONS 

1. Does your state require saloon-keepers to post the name of drunkards 

in the saloon, and is the saloon-keeper required not to sell intoxicants 
to such persons? 

2. What exemptions for debt are allowed in your state? 

3. What is the statute of limitations for debt in your state? 

4. Are the gambling laws in every particular enforced in your community ? 
5- Are the liquor laws enforced in your community ? 

6. What rate of interest is charged by the local banks on ordinary loans? 

7. On real estate loans? 

8. What is the law in your state in relation to interest? 

9. Secure a blank chattel mortgage form, read it carefully and explain 

its contents. 

10. At the first opportunity, secure from a local paper, a copy of an ad- 

vertisement of a foreclosure of a mortgage. Read it carefully and 
be prepared to explain its purpose and meaning. 

11. Are days of grace allowed in your state? 

12. Are there any property restrictions in your community? If so, what 

are they? 

13. Where are judgments filed in your county? 

REFERENCES 
Burdick, F, M., Essentials of Business Law. New York: D. Appleton & 

Co. 
Cromwell, J. H., The American Business Woman. New York: Putnam. 
Huffcutt, E. W., Elements of Business Law. New York and Boston- 

Ginn & Co. 
Spencer, E. W., A Manual of Commercial Law. Indianapolis: Bobbs- 
Merrill. 



CHAPTER XXXIV 
BUSINESS PRINCIPLES IN THE HOME— SUMMARY 

As there are certain principles, generally accepted as funda- 
mental by all business men in the commercial world, so every home- 
maker and housewife should adopt a household business code. 
Many items that should form a part of such a code have been men- 
tioned in previous chapters, but are here repeated and others are 
given to furnish a summary of business principles for the home. 

Fundamental Principles. — The maintenance and operation of 
a home is a business, and as such, it must be conducted efficiently 
and upon a business basis. Principles which one does not expect 
a business man to violate must not be violated in the running of 
the home. 

" Time is money " is a well known business axiom. A house- 
wife has no more right to squander her time than has a business 
man a right to waste it in his office. Clerks are not permitted to read 
the morning papers in the employer's time, and wives should not 
make a habit of delaying the work of the household for the sake of 
indulging in some form of recreation. 

System is the business man's fetish. It should have the house- 
wife's consideration. The business of the home should be systema- 
tized and simplified and placed upon the most efficient basis possible 
to obtain. 

Marriage is a partnership on equal terms. The home is what 
all the members of the family make it ; not what the mother makes 
it, but what the father and mother with the help of the son and 
the daughter make it. Each must do his or her share. The work 
of each, in proportion, is just as important as that of the other. 
If anyone neglects his or her share, it must be done by someone else. 
Lost and squandered time, waste of food or effort, breakage, mis- 
takes, all mean loss in dollars and cents and in rome way, at some 
time, someone must pay for such leakages. In other words, a suc- 
cessful home means successful cooperation on the part of each mem- 
ber of the family. 

There are many specific principles that may be adopted by any 
housewife, and a few of them are given herewith : 

416 



BUSINESS PRINCIPLES IN THE HOME 417 

Schedules for Work and for Employees. — It is easier to do 
one's own housework if a definite schedule of daily and weekly duties 
is made. It is much easier to have a perfect understanding with a 
maid when she is first engaged than it is to be continually issuing 
new' instructions from day to day. There is certain definite work to 
be done in every household daily, or upon certain days of the week, 
and every mistress has her own preference as to when and how such 
work should be done. Much friction may be avoided by handing 
a new maid a carefully written (typewritten) set of instructions, 
preceded by a carefully worded explanation as to the purpose of 
submitting the mistress's wishes in this form. In the absence of 
the mistress there need be little cause of misunderstanding on the 
part of the maid in relation to her work or what is expected of her 
under certain circumstances. 

The Housekeeper's Business Desk. — Every housekeeper 
should provide herself with a desk with compartments and plenty 
of drawers in it. This may be kept in the dining-room or some room 
accessible to it and the kitchen, or wherever is most convenient. A 
space should be provided thereon for cook-books and other books 
pertaining to household management. Card recipe drawers may be 
used if desired. A metal box with key should be secured for hold- 
ing stamps and small change. A postal scale; a good inkstand, a 
number of pens and pencils; blank tabs for memoranda, writing 
paper and envelopes, paste, blotters, expense books, a file for bills 
due and bills paid, and a waste basket should form part of the 
equipment of this desk. Everything that contributes to the man- 
agement of the business of the home should be accessible to, on, or 
in this desk. 

A Typewriter in the Home. — A second-hand or rebuilt type- 
writer may be purchased at a nominal cost, and its use in the home 
will soon justify the expenditure. It saves much time in many 
ways. Letters, orders and forms can be made out in duplicate on 
the machine and in other ways it contributes to business-like methods 
in the management of household affairs. 

A Family Budget. — A family budget, or plan of spending, 
should be made as soon as possible, but in order to do this properly 
it may be necessary to have a record of all expenditures for a period 
of at least a year. 

Household Accounting. — An expense account in the form of a 
household ledger should be kept ; that is a separate record or account 
should be kept with each important item of household expense. 
27 



418 THE BUSINESS OF THE HOUSEHOLD 

Buying. — In buying of local tradesmen and peddlers, do not 
hesitate to weigh food materials upon your own scales at home, 
and do not hesitate to let your tradesmen know that you do this. 
Watch the scales as the clerks weigh your purchases. 

Always ask prices before purchasing and if prices are exorbi- 
tant do not be afraid to express your opinion to the tradesmen and 
do not be intimidated by other customers. It is not necessary to 
establish for yourself the reputation of being a " kicker 9 * but every- 
one with whom you have business dealings should understand that 
you are a business woman and that you will not be imposed upon. 

The Family Bank Account. — A joint bank account should be 
opened in the name of both husband and wife, and all moneys from 
all sources received by both parties should be deposited therein, sub- 
ject to the check of either party without the signature of the other 
party. Such a bank relationship will help develop credit, a most 
important financial resource (p. 81). 

Charge Accounts.- — Charge accounts may be opened with repu- 
table merchants and with city department stores, as the latter afford 
many opportunities unobtainable elsewhere. 

Household Bills. — All household bills should be paid once a 
month, and by bank check, not with cash. Bills due the first of 
the month should be paid not later than the tenth of the same 
month. 

Receipts. — Eeceipted bills may be kept in an inexpensive filing 
case with pockets arranged alphabetically the same as the old- 
fashioned letter-files. They may be filed alphabetically according 
to the name of the creditor. Another method of keeping receipts is 
to paste them in a large bill book. In this case, all gas bills would 
be pasted on the same pages; all bills for electricity on the same 
pages, etc. Begin at the top of the page and paste only the top 
of the receipt ; then the second receipt can be partially hidden under 
the first one and so on until the page is full. There is less need for 
keeping receipted bills if they have been paid by check as the 
endorsed check constitutes a receipt. 

Instalment Buying. — This method of huying may be indulged 
in for the purchase of necessary furniture and household fittings. 
If not heavily in debt, and if assured of an income that is above 
the margin of safety, there are times when the purchase of musical 
instruments, books, and other articles that might ordinarily be 
considered as luxuries, could be indulged in without question. Life 



BUSINESS PRINCIPLES IN THE HOME 419 

insurance, a savings fund, and an old-age fund should, however, 
be established before resorting to instalment buying. 

Life Insurance. — The head of the family should if possible 
carry from two to five thousand dollars life insurance, and as much 
more as possible. Unless one has more than the average income, 
life insurance should be divorced from investment features such as 
endowment clauses. If one cannot afford several thousand dollars 
insurance in old line companies, one should not hesitate to take part 
of his insurance in assessment associations. 

The wife should carry insurance as well as the husband, if it is 
at all possible to meet the payments necessary. A widow with a 
life insurance policy has a sure protection against old age. It is at 
least a guarantee that the maintenance of a mother will not be 
merely a matter of charity. 

Do not borrow on your life-insurance as it is intended for a 
definite contingency and should be reserved for that. It is poor 
policy to borrow on life insurance policies. 

Borrowing. — Do not borrow from friends or relatives. Do 
not ask tradesmen to carry accounts longer than the customary 
period, as that is another form of borrowing. If money is needed, 
borrow it from the local bank. If you owe money at the bank, pay it 
before it is due, and not later than the day of maturity. If you owe 
money and do not pay it when due, do not be offended if you receive 
notice of the same or a request to pay. 

One should not hesitate to borrow money with which to build or 
buy a home. Neither should one hesitate to mortgage a home, if 
the money can be invested safely, at a higher rate of interest than 
one has to pay for the loan and the expenses connected with 
making it. 

Those who cannot borrow from banks should investigate possi- 
bilities of Building and Loan Associations, Credit Unions, and 
Morris Banks. Before resorting to questionable agencies such as 
"loan sharks" for temporary financial assistance, one may better 
make a confidant of an employer, asking for advice if not for finan- 
cial assistance needed. 

Legal Obligations. — Do not endorse or sign a note for anyone, 
friend or relative, and do not ask anyone to sign or endorse a note. 
Do not sign a lease for anyone or guarantee the payment of any 
indebtedness unless contracted by yourself. 

Do not sub-lease property without the consent of the owner in 
writing and without a full knowledge of your rights and obligations 



420 THE BUSINESS OF THE HOUSEHOLD 

under the sub-lease. If you have a lease of a piece of property, be 
sure you know your legal rights before you attempt to sub-lease. 
Landlords accepting tenants under a sub-lease, generally hold the 
original tenant responsible for the sub-tenant. 

Property.— Husband and wife should hold all real estate in 
joint-tenancy, and all personal property in common, so that each 
has equal rights in it. It might be possible to place the household 
furnishings and personal property under an agreement which will 
safeguard the rights of the survivor with regard to it. A New 
York lawyer said, " I always consider that in buying any furniture, 
it is my wife's. The law exempts $500 worth of personal property, 
but all will go to my wife." 

Engage the Services of a Lawyer. — If necessary legal infor- 
mation cannot be secured from other sources, it will not be amiss 
for every newly-married couple to secure from a competent lawyer 
a written statement as to the rights of both husband and wife in 
property, their legal relations one to the other, and the law of their 
state in reference to inheritances. 

Making a Will. — Every head of a family and everyone posses- 
sing real estate or any considerable amount of personal property 
should make a will. Do not attempt to do this yourself, unless in 
an emergency, but have a competent lawyer do it for you. 

In emergencies, a competent will may be drawn up by ani 
adult of sound mind, or anyone not related to the will-maker may 
draw up such a will, providing he has no interest whatever in your 
estate, and if two, in some states three, witnesses attach their signa- 
tures by the side of the signature of the maker of the will. 

Do not put off the making of a will until old age or sickness 
comes; like life insurance it should be taken care of early, but as 
conditions affecting property change, do not hesitate to make a new 
will. 

Become familiar with the laws in your state pertaining to the 
inheritance of property, and your rights in the interests of property 
held by husband, wife, parents or children, as the case may be. 

Litigation. — Do not resort to the courts to settle disputes ex- 
cept as a last resort. Arbitration will cost much less. This, how- 
ever, does not mean that you should not obtain legal advice. Do not 
hesitate to consult a lawyer whenever necessary. His advice may 
save you many a dollar. 

Protection against Fire. — Be sure that your house or apart- 
ment is properly insured, and instruct your broker to call you up a 



BUSINESS PRINCIPLES IN THE HOME 421 

week before your policy expires. If there is a mortgage on your 
property, be sure that a u mortgage clause " is attached to it, as a 
fire insurance policy covering mortgaged property, without sueh a 
clause, is questionable. 

If you have valuable furniture, rugs and pictures be sure and 
have them insured. If possible try to have a list of your property 
covered by such insurance attached to and made a part of the policy. 
Keep your policy and inventory somewhere outside your house. 

Simple precautions should be taken against fire. Proper habits 
should be formed in the care of burnt matches, the use of tobacco, 
the use and storage of gasoline and kerosene. Fire extinguishers 
should be placed on each floor of a house, and kept in order. If 
these are beyond reach of one's means, buckets of water should be 
kept in convenient places. The kitchen sink might be equipped 
with a nozzle for attaching a hose, and a piece of garden hose should 
be kept in reserve in a convenient place for emergencies of this 
nature. Asbestos, tile and other fireproof roofs reduce the loss 
from fire very materially, and undoubtedly would prove a factor in 
securing lower insurance rates. 

Insurance Records. — A record should be kept of the amounts 
of all insurance, name of company, date taken out, premiums paid 
and date of expiration; with life insurance, record the date pre- 
miums are due. 

A Household Inventory. — Every family should keep an in- 
ventory book in which are listed the various articles of furniture 
and furnishings of the home. Any blank book will answer and a 
different page may be given to the different necessary classifications, 
and the facts of cost, date purchased, etc., should be entered (see 
p. 276). 

Safety Deposit Boxes. — Every family should maintain a 
safety deposit box in some bank or trust company, in which should 
be kept all legal papers, such as deeds, wills, insurance policies, mort- 
gages, and other valuable property. A fire-proof box or safe in the 
household is also desirable. 

Magazines and Periodicals.— A record should be kept of all 
subscriptions and the date of their expiration. 

Contributions to Church and Charity. — These should be re- 
corded under appropriate headings. This record will facilitate the 
calculation of one deduction item for the Federal Income Tax. 

Medical Services. — If you are possessed of ordinary intelli- 
gence and common sense, a doctor need not be called every time 



422 THE BUSINESS OF THE HOUSEHOLD 

some member of the family is indisposed. Every mother and father 
should be familiar with the ordinary principles of physiology. 
Equipped with this knowledge, a little study of diet and food prob- 
lems will solve many physical ills, and lessen the professional bills, 
it is the part of wisdom to have a thorough medical examination 
of every adult member of the family at least once a year. The 
dentist may need to be visited oftener. 

If one cannot really afford medical services, there are agencies 
in every large city that will supply such attention at minimum 
charges and in many cases without any charge. If there is need of 
medical services, have the best that can be afforded. It is the cheap- 
est in the long run. Do not under any circumstances resort to 
patent medicine. If a physician is called for an emergency, write 
down the procedure followed for future use. 

Secure from your State University or College, from your City 
and State Board of Health, from the Federal Government, from 
the U. S. Children's Bureau, and from the U. S. Public Health 
Service, at Washington, D. C, the free bulletins published in 
relation to health and disease and sanitation. 

The First-aid Outfit. — A complete first-aid outfit, with book 
of instructions, should be found in every home. This should be 
stored in a place sure to be quickly accessible, but beyond the reach 
of children. 

Rules for Children. — A few simple rules should be established 
for the guidance of children. These rules may be typewritten and 
tacked up in the room of each child. They should include the hour 
of rising, of retiring and of meals; the hour for leaving the house 
for school and the time they are expected to report at home from 
school ; the time for study and for play and the mention of daily 
duties and work to be performed. For his own development, as well 
as for the good of the home, every child should early in his life be 
assigned one or more daily tasks for which he is held responsible, 
and made to see that he, and the way in which such tasks are per- 
formed, are factors in the general good of the home and society. 

Allowances to Children. — Do not make allowances of spending 
money to children, for which they are not held carefully account- 
able. If desired, make gifts of money from time to time to your 
children, or give them regular sums of money with which to pur- 
chase their own clothing and other supplies as soon as they are 
old enough. Teach them how to Keep an expense account and 
how to buy. Teach them also how to save and as soon as they 



BUSINESS PRINCIPLES IN THE HOME 423 

have accumulated enough, introduce them to the mysteries of a bank 
account. They may be encouraged to save by a promise of a certain 
sum, say fifty cents for every dollar which they put in the bank. 

Children should be taught four things in relation to money: 
(a) How to earn and receive; (6) how to spend; (c) how to save; 
(d) how to give. 

Work of a cooperative nature, to which every member of the 
family is supposed to contribute, should not be paid for when 
done by children, but if the child can do work that otherwise might 
require hired help to do, compensation may be allowed. Small 
undertakings should be encouraged, such as the raising of poultry, 
the making of a garden and the selling of the produce raised ; news- 
paper routes, Saturday employment, and similar enterprises teach 
children the value of money. 

Children should be taught early to buy their own small necessi- 
ties, and as they grow older their own clothing. By assisting in 
the family marketing, they may gain a sense of values and be taught 
how to market intelligently. 

Perhaps simple problems in investments may be explained and 
put in operation from time to time. The opening of a savings 
bank account should be one of the first steps along this line. 

Intelligent giving through Church, Sunday School and young 
peoples' organizations may be the first step in teaching how to give. 
Individual cases of misfortune and poverty depicted in the news- 
papers, public demands for assistance in calamities should perhaps 
be brought to the attention of young people in such a way that they 
themselves will feel the first promptings of a responsibility that 
will lead them to part with a portion of their savings in order to 
help others. 

Should Children Pay Board? — So soon as children become 
economically independent or able to support themselves, they should 
first be required to pay their own carfares, buy their own lunches 
and supply their own clothes. As they earn more they should be 
expected to pay a certain amount for board. This may be fixed at 
a minimum amount, or it may be based upon the total monthly ex- 
pense for the entire family for rent, board, and laundry, and appor- 
tioned according to the number in the family. Earning capacity, 
however, should be considered in such an apportionment. 

Savings. — A definite apportionment should T>e made for 
weekly or monthly instalments. All money should be deposited 
in the bank, so that a check may be drawn for the monthly savings, 



424 THE BUSINESS OF THE HOUSEHOLD 

the amount being deducted from the balance as shown on the stub 
of the check-book and the check should be held, but unsigned. As 
soon as the savings amount to a few hundred dollars, they should 
be safely invested at a fair rate of interest. Do not forget to com- 
pound your interest as often as possible. 

Making Investments. — Do not make any investment without 
first consulting your local banker. His advice may save you many 
dollars. If you are a widow, agree with your banker to have him 
pass upon all of your expenditures above a given sum. Instruct him 
not to honor your own check for an amount in excess of this sum. 
This will protect you from hasty action and second thought may 
convince you of an error in judgment. It will protect you from 
swindlers, while friends and relatives will soon cease to bother you, 
if they understand that a hard-headed banker must first pass upon 
their request for a loan. Do not speculate on the Stock Exchange 
or elsewhere. Speculation means risks that few can afford to take, 
regardless of the moral aspect of it. 

Old-age Fund. — A portion of the savings should be laid aside 
for an old-age fund, and this should not be subjected to speculative 
risks or investments outside of first-class bonds. If not so invested 
it should be kept in a savings bank at interest and the interest 
compounded. 

Children as soon as they are self-supporting should contribute 
to this fund. Each one should purchase bonds and pay for them in 
instalments, to be used by the parents if necessary later in life and 
if not used to be returned to them at the death of the parents, or 
the amount to be apportioned out of the estate before an equal 
distribution is made of the parents' estate. 

Parents should not convey the bulk of their estate to children 
but they should retain their property, both real and personal, during 
their lives, as a protection against penury and neglect later in life. 

In Conclusion. — Any family who will endeavor to run the 
home upon a business basis will find that efficiency brings as great 
a return, in proportion, in the home, as it does in business. 

Many will object to so-called " new-fangled notions." Others 
may be too indolent to follow any system, while others may be 
indifferent. William T. Ellis says, "There are three kinds of 
people in the world — the wills, the won'ts and the ean'ts. The first 
accomplish everything ; the second oppose everything ; and the third 
fail in everything." 

Let everyone ask the question, " To which class do I belong? " 



CHAPTEK XXXV 

TO THE TEACHER AND STUDENT OF HOME 
ECONOMICS 

The fact that the study of Home Economics has not yet been 
standardized in all of the various schools teaching the subject, often 
makes it necessary for writers to compile texts that will be suffi- 
ciently comprehensive for the uses of all types of schools. This 
naturally results in giving perhaps more material than might be 
needed by many schools in order to supply the needs of others. 
For this reason, a few suggestions in regard to the use of this text 
may be pertinent. 

The Scope of the Book. — Before entering upon the study of 
this text, the reader or the student first should become familiar with 
the author's purpose in writing it, which means that a careful read- 
ing of the preface should be the first task. Next, examine the table 
of contents, noting (a) the divisions into which the subject has been 
apportioned, then (b) the subdivisions of each topic, and finally 
(c) the subject of each chapter. Having done this, examine care- 
fully the Cross Index in the back of the book, noting the many and 
various topics that are treated in the text. Compare a few refer- 
ences in the cross index with the text matter, so as to learn the 
importance of depending upon the index in finding subjects, instead 
of idly turning the pages of the book with a vague idea as to where 
the topic may be located. One should learn how to use a book as 
well as study its contents. The above preliminary work will give 
the student a general idea of the subject itself, and a visualization 
of its many topics and sub-topics so that the text may be approached 
with a clear idea as to the logical development of the subject itself. 

Note-Books. — Before beginning the study of the text, every 
student should procure a note-book. Any blank book will answer 
the purpose but loose-leaf note-books are particularly convenient. 
The organization of material in note-books will of course follow the 
sequence of topics studied, it will call for four sections or possibly 
separate books — one to cover Part I, the second one for Part II, 
the third for Part III and the fourth for Part IV, as each part of 
the text represents kindred topics. 

425 
30 ° 



426 THE BUSINESS OF THE HOUSEHOLD 

Each part of the note-book dealing with a topic might be 
divided into three parts; the first for answering questions, the 
second for recording the results of investigations and demonstra- 
tions, the third for entering facts imparted by the teacher, and 
the fourth for miscellaneous notes, reference readings, etc. 

Questions and Answers. — It is not intended that students 
should slavishly answer every question following the various chap- 
ters. The teacher may omit any question desired or add original 
questions of her own. Only such questions as the student may 
have time to answer, or those that are especially pertinent to the 
class, or to local conditions should be given. 

Demonstrations. — The same instruction pertaining to ques- 
tions is pertinent to original investigations and demonstrations. 
The environment of the student, the nature of the course being 
given, and the character of the class, must govern the assignment 
of such work. 

In asking students to make outside investigations which necessi- 
tate requests' from business men for specific information, the teacher 
should assign certain students to gather certain types of informa- 
tion, so that no one business or professional man may be burdened 
by similar demands from many students. The same rule should 
be followed in asking students to secure printed forms and blanks 
for exhibit to the class, unless they are to be purchased. Printed 
legal forms are sold by stationers and if it is desirable for the stu- 
dents to secure them, they should be purchased and incorporated 
as a part of the note-book. Old forms already used and of no value 
may be secured from the student's own home. 

Visits to the offices of public officials! should be made either by 
the entire class, or in groups, at various times, but such visits should 
never be made without first securing, in advance, the consent of the 
official to be visited. 

Every student of home economics should become familiar with 
the location of city and county officers and with their duties, and 
visits to their offices may sometimes prove interesting and profitable. 

Visits of Outside Business and Professional Men to the 
Class. — From time to time, the teacher should secure the consent 
of various business and professional men and especially public offi- 
cials to visit and address the class upon the subjects represented by 
their work. The County or City Treasurer, for instance, could give 



TEACHER AND STUDENT OF HOME ECONOMICS 427 

the class much practical information and answer many questions 
difficult to make clear or answer in a textbook. 

Themes for Debate. — Time should be made during the school 
year for at least several debates upon home economic subjects of 
especial interest to the class or community. A few suggested themes 
for this purpose will be found following some of the chapters. 

References. — The Bibliography of a subject being studied 
should not be neglected. Eesearch work demands reference to many 
books and periodicals and the student should become familiar with 
the various material that has been written upon the subject under 
consideration. A knowledge of the various writers and books on a 
special subject are the keys that will unlock for the student the 
store-house of information necessary to a successful mastery of 
such a subject. Teachers will find it wise to give specific references 
to pages in reference books bearing on topics under discussion. 

The Text Itself. — The slavish following of any text is poor 
pedagogy. The Business of the Household is a subject that should 
be studied in every High School, but it would be folly to expect the 
smaller High Schools to do work that only can be done success- 
fully in more advanced classes. For such a reason, in some schools 
the teacher will do well to arrange an outline for such a course as 
may seem best adapted to the needs of the class. Then, instead of 
requiring an intensive study of every page and chapter in the text, 
the student may be directed to the specific lessons desired. The 
teacher in such instances should mark for the students certain 
chapters that should be read and others that require intensive study. 
In this way, the text may be adapted to the needs of any Home 
Economic course. 

Students should be taught not to accept general statements as 
standard rules applying to all cases. They should however, be made 
to see the principles involved and taught to modify or apply those 
principles to varying conditions. 

In Conclusion. — Adapt the text to the needs of the class or 
student. The student cannot shape her parents' home to meet all 
the principles taught, but all of the principles mentioned may be in 
some way adapted to the needs of the student and his or her home. 

An attempt should be made to enlist the interest of parents in 
the students' study of the Business of the Household, and assurance 
should be given parents that any information given the student per- 
taining to the family, will not become the property of the class if 



428 THE BUSINESS OF THE HOUSEHOLD 

it is supposed to be confidential. Caution should be exercised in 
asking students embarrassing questions pertaining to the finances 
of the family. Suggest to the student that father and mother might 
be interested in this book, and that by calling their attention to it, 
or by reading from it to them, discussions in the home might be 
started that would result in securing the parents' cooperation in 
this study. From their own experience, parents might be able to 
corroborate or amplify the statements made in the text or explain 
how the principles involved have been applied in their own home. 
Finally, because some statement in the text may not have been 
proven by teacher or student, do not pass judgment upon it until 
an investigation has been made to learn if the principle or fact 
stated might not apply to some condition, circumstance or place 
with which the student or teacher may not have had experience. 
Discussion on the part of students should be provoked and with the 
exercise of judgment and common sense, this study of the Business 
of the Household will be found one of the most necessary of all 
subjects embraced in the curriculum of Home Economic classes and 
schools. 



CROSS INDEX 



Note: — A Cross Index should be of more value than mere references to 
the contents of a book. It has other values that should be studied by every 
student or user of a reference or text-book. 

It gives the user a general as well as a specific knowledge of the ar- 
rangement and purpose of a book and thus makes the text a more valuable 
tool than it otherwise would be. 

When topically arranged, each group of topics becomes a subject that 
may well bear further and more detailed study, not merely in the text but 
from outside investigations and collateral readings. Such groups furnish 
themes for investigation, debates, and research work. 

It is to be hoped that every user of this booky at least, will carefully 
study the Cross Index as well as the Table of Contents at the beginning of 
the book, before reading or entering upon the study of the text. 



Abnormal economic conditions, 96 
Abstract of title, 394 

guarantee policies, 394 
Torrens System, 394 
Accident insurance, 300 

indemnities, 300, 301 
Accounts, cash, 14, 50, 81, 87, 103 

food, 53, 55, 56 

household, 26, 41, 50 
Address record, 281 
Adjustment of fire losses, 190 
Adulterations of food, 100 
Age, 383 

of consent, 383 

fund, old, 424 
Alimony, 390 
Allowances, 13, 422, 423 
Amortization, 80, 336, 337, 339, 340 
Annuities, 310 
Anthracite, 147 
Apartments, 119 

advantages of, 111 

cost of maintaining, 116 

owning, 115 

rent, 67 

what it includes, 121 

small vs. large, 120 
Appointment record, 281 
Apportionment checks, 72-74, 321 
Apportionment of income, 60, 63, 66 

savings checks, 318, 319 
Arrangement of house, 264, 295 
Assessment and taxes, 396 



Assessment insurance, 303 
cost of, 304 
vs. "old line," 305 
women's auxiliaries, 306 

Bank account, 19, 418 

advantages of, 29 

how to check-up a, 35 

joint, 19, 418 

opening a, 19 

savings, 32 

Federal farm land, 335 
Bank book, 35 

borrowing from the, 88 

choosing your, 28 

checks, 21 
altering, 23 
budget, 29 

certified, 30 

counter, 20 

endorsing, 22 

exchange on, 23, 31 

holding, 23 

making out, 22, 23, 27 
to officials, 23 

outstanding, 38 

paying bills by, 17, 84 

payable through Clearing House, 
24 

draft, 30 

interest, 88, 323, 325 

notes (see Notes), 88 

reconcilement form, 39 

statement to customer, 35 

429 



430 



CROSS INDEX 



Banker's partial payment bonds, 325 
Barred claims, 413 
Beneficiaries, 310 
Berries and small fruits, 226 
Bills, apportioning payments of, 273, 
275 
borrowing to pay, 88 
checking-up and listing, 25 
household, 418 

paying by check, 17, 24, 83 
bank-budget check, 28 
payable, 272, 274 
receivable, 275 
Bill boards, 414 
Boards of review, 180 
Board, should children pay? 423 
Body, food needs, 192 
Boiler, kitchen, 251 
Bonds, 345 

banker's partial payment, 346 
below par, 346 
Liberty, 326 
par, 345 
premium, 345 
Borrowing, 419 

from bank, 88 
Bread, laws governing sale of, 223 
British thermal unit, 152 
Budget, 60-74, 78 
apartments, for, 67 
applying the, 72 

based on minimum necessities, 67 
checks, 28 
clothing, 240, 244 
farm, 71 
family, 417 
food per cost, 204 
per day, 203, 204 
per month, 202, 203 
per week, 204 
higher life, 358 
houses, for, 70 
items carried over, 72 
old age in the family, 330 
percentage, 64 
relative cost of items in, 68 
Richards, Ellen, 64 
salary, 64, 68, 70 
Sheaffer's, 64 
system of the, 66 
variable standard of the, 4 
Building, 79 

and loan associations, 332 



Business advice, 33 

desk in the home, 260, 417 

forms in the home, 268 

principles in the home, 416 
Buying, 418 

instalment, 89, 418 

investigation before, 129 

system in, 266 

Calorie portions, 197 
Calories, 197 
Candlepower, 151, 152 
Capacities, to find, 231, 232 
Capitalism vs. unionism, 96 
Card records, 279 
Cash accounts, handling, 50 

discount for, 87 

expenditure record, 50, 54 

paying, 81, 103 
danger of, 14 
Casualty or employer's insurance, 

302 
Causes of rising prices, 98 
Caveat emptor, 411 
Charge accounts, 84, 85, 105, 418 

method of distributing income, 14 
Charity, 375 
Checks, altering, 23 

bank-budget, 28 

counter, 20 

certified, 30 

endorsing, 32 

exchange on, 23, 31 

holding, 23 

making out, 22, 23, 27 

outstanding, 38 

paying bills by, 17, 84 

payable through Clearing House, 
24 
Check-book stubs, 24 
Checking-up a bank account, 35 
Children, allowances for, 422, 423 

relation to care of parents, 352 
to work of the home, 293 

rules for, 422 

schedules for, 265 

should they pay board, 423 

share of family expenses, 76, 77 
Church activities, 375 

and charity, 421 
Clearing House, 24 
Cothing, 62, 234, 245 

budgets, 240, 244 

buying systematically, 267 

expenditures, 232 



CROSS INDEX 



431 



Clothing, extravagance in, 238 

made-to-order vs. ready-made, 238 

material and construction, 239 

men's, 237 

outside aids to making, 239 

renewals of, 247 

standards of, 237 

women's and children's, 236 
Coal (see Fuel), 147 

composition of, 146 

hard and soft, 144 

to find amount in bin, 143 

weight of per cu. ft., 145 

weighing, 223 
Coke, 145 

Cold storage, 98, 100 
Common law, 381 

marriages, 387 
Comparison of fuels, 146 
Competition between married and 

single men, 10 
Conservation, food, 206 

rules for, 207 
Contracts, barred claims, 413 

caveat emptor, 411 

exemptions, 412 

garnishment, 413 

illegal, 410 

incompetent parties to, 410 

instalment, 412 

signature to, 410 

statute of limitations, 413 

Sunday, made on, 411 

written vs. oral, 410 
Cooking, electric and gas, 172 
Cooperative banks, 335 
Correspondence courses, 359 
Cost of doing business (grocers) 
212 
living in a house, 122 
maintaining apartment build- 
ing, 116 
Credit, 81, 83, 85 

abuses of, 86 

cost of, 87 

department store, 85 

retailer's, 87 



Daily routine, system in, 265 

Days of grace, 413 

Deeds, joint tenancy, 17, 395 

quit claim, 399 

recording, 399 

trust, 414 



Deeds, warranty, 398 
Deliveries affecting prices, 104 
Delivery receptacle, 257 
Demand notes, 34 
Department store credit, 85 
Deposit slips, bank, 20, 31 
Discount for cash, 87, 103 
Dish-washing machines, 259 
Distribution of food products, 211 
Divorce, 387 

alimony, 390 

laws pertaining to, 389 
Document boxes, 270 
Doling method, distribution income, 

12 
Dollar, purchasing value of, 103 
Domestic service a trade, 297 

(See Service in Home) 
Drafts, bank, 30 
Drunkards, 411 

Early lighting mediums, 150 
Economic conditions, 68 
Education in the budget, 63, 

358-362 
Electric appliances, 172, 174 
safety rules for, 167 

bills, how to read, 167 

cooking, 172, 173 

fans in the home, 259 

flat irons, 172 

heating, 172 

incandescent lamps, 170 

light, 163, 170 

maximum demand charges for, 
165 

meter reading, 164 

power, 163, 175 

services, cost of, 171 
rates, 163, 166 

wiring, 169 
Electricity, advantages and disad- 
vantages of, 147 
Engel's law, 64 
Environment, factor in cost living, 

122 
Estates and trusteeships, 33 
Evolution of home conditions, 2 
Exchange on checks, 30 
Exemptions, tax, 179 
Expectancy of life, 307 
Expenditures, 60 
Expense of service in home, 289 
Expenses, reducing, 106 



432 



CROSS INDEX 



Factors involved in marketing, 212 
False standards of living, 8 
Family, a cooperative unit, 76, 294 
income allowances, 13 
charge method, 14 
doling method, 12 
joint account, 15 
laws affecting the, 410 
Farm homes, 117 
Fats, 193 

"Fat-soluble A" substances, 195 
Federal Bureau of Labor's price re- 
port, 96 
farm land bank, 335 
loan associations, 335 

annual payments to, 338, 
340 
income tax, 183 
Filing bills, 271 
Financing the family, 76 
Fire insurance, 187 
amount of, 189 
buildings, 189 

vacating, 189 
furniture, 190, 421 
losses, adjustment of, 190 
mortgaged property of, 190 
policies, co-insurance clause, 188 
standard, 187 
valued, 188 
records, 421 

terms used in, 187 
First aid outfits, 422 
Flat irons, electric, 172 

gas, 162 
Follow-up tabs, use of, 282 
Food, 61, 192-209 
accounts, 53, 55, 56 
adulterations, 100 
bills for average family, 97 
body needs, 192 
budgets, 202, 203 
buying direct, 215 
cost per day per capita, 203, 204 
conservation of, 206, 207 
calories, 197 
daily energy requirements, 198, 

204 
distribution of, 211, 216 

cost of, 211, 212 
economies, 201 

"fat-soluble A" substances, 195 
how to select, 198 
kinds of, 193, 194 



Food, marketing, 210-219 
clubs, 217 
deliveries, 218 

markets, study of, 214 

menus, 200 
balancing, 201 

mineral elements in, 194, 195 

necessities, 195 

parcel post marketing, 216 

portions, 197 

prices, 213 

preparation of, 211 

production of, 210 

purpose of, 192 

requirements based on cost, 204 

rules for selection of, 199 

storage facilities, 98, 100, 216 

values, quick lunch portions, 205 

vitamines, 195 

waste, 201 

"water soluble B" substances, 195 

what to select, 199 
Forms and note books, 272-284 
Fraternal insurance, 303 
Fruits and vegetables, 194 
Fuel (see also Coal), 137, 143 

advantages and disadvantages, 147 

comparison of, 146 

composition of, 146 

famine, 101 

kinds of, 143, 147 

weighing, 223 

weights per cu. ft., 145 
Furnaces, 137 
Furniture insurance, 190 

inventory, 190 
Fuses, electric, 169 

Gambling, 411 
Games, 374 
Garnishment, 413 
Gas, advantages and disadvantages, 
147 

apparatus, 161 

bill, how to read, 157 

burners, 160 

consumption record, 158 

cost of, 154 

engines, 162 

fuel, 140 

history of, 150 

leaks, 158 

light and heat, 150, 159 

mantles, 159 



CROSS INDEX 



433 



Gas meter, 155, 159 

power, 162 
Gold, influence on prices, 102 
Government pension systems, 356 
Grandmother's system, 262 
Grains, 193 
Guarantee policies, 394 

Health insurance, 303 

Heat units vs. candlepower, 152 

Heaters, cleaning, 140 

rules for operating, 141 

specific rules for care of, 142, 143 
Heating, 137 

equipments, 139 

furnace, 157 

gas, 146 

hot water, 138 

oil, 146 

other methods, 146 

steam, 138 

stove, 137 
High cost of living, 95 
High living, 95 

prices, 95 
Higher life, 61, 62, 63, 358 
Home conditions, former, 2 
Home-making a specialized indus- 
try, 1 

ownership, 110, 112 
House, living in, 111 

rent, what it includes, 121 
Household accounts, 41, 267, 417 
why many are impractical, 41 
principle involved in, 42 
handling cash, 50 
headings for ledger, 46 
ledger, 42 

inventory, 421 

ledger, 42, 44-46, 50 

slackers, 292 

standards, 4 

waste, 107 

working equipment, 246 
Housewife's qualifications, 3 
Hot-air furnaces, 142 
Hot- water heating, 138 

plants, 143 
Humidifi cation, 139 
Husbands, rights and liabilities of, 

390, 395 

Ice, 223 

box, iceless, 255 256 
28 



Incandescent lamps, 170 
Income, 78 

apportionment of, 60, 63 

tax, 183 
Indebtedness, 79, 88 
Index figure, 97 
Infants, 383 
Inheritance, 403-409 

administrator, 404 
bonds of, 407 

distribution, 405 

dower, 404 

escheat, 404 

executor, 404 

forms of property, 403 
estates, 403 

heirs, collaterals, 403 
lineals, 403 
minor, 403 

joint tenancy, 406 

taxes, 185 

testator, 404 

trust companies, 408 

wills (see Wills), 403 
Instalment, buying, 418 

leases, 412 

plan, 89-92 
Institutions for saving, 329-341 

building and loan ass'ns, 332 

cooperative banks, 335 

credit unions, 333 

Federal farm land bank, 335 

Morris plan banks, 341 

postal savings system, 321 

savings bank, 329 
Insurance, 61, 62 

annuities, 310 

assessment and fraternal, 303 

buildings, on, 189 

cost of, 304 

expectation of life, 307 

fire, 187, 420, 421 

furniture, 190 

legal reserve companies, 306 

life, 419 

mortality tables, 308 

mutual companies, 307 

policies (see Policies), 309 

stock companies, 307 

terms used in, 187 
Interest, loans on, 88 

parts of a year, for, 325 

savings on, 323 



434 



CROSS INDEX 



Inventories, 81, 276, 277, 421 
Investigation before renting, 129 
Investing in real estate, 79 
Investments, 33, 323, 342-349, 424 

(See Notes) 

(See Real Estate, Bonds, etc.) 
Iron in food, 194 
Items that add to rent, 123 

Joint account, 15 

bank account, 16 

tenancy, 17, 395 
Judgments, 401 

notes, 343 

Kerosene, 151 
Kindergartens, 358 
Kitchen, 248, 261 

Labels, gummed, 271 
Labor, factor in price, 99 

saving equipment, 296 
Laundry chute, 259 
Laws which affect the family, 410 
age, 383 

of consent, 383 

barred claims, 413 

caveat emptor, 411 

common law, 381 
marriages, 387 

contracts, 411 

drunkards, 411 

gambling, 411 

garnishment, 413 

governing family, 382, 392 

infants, 383 

instalment leases, 412 

legislation by courts, 383 

marriage laws, 384, 385 
license to, 385 
officials to, 387 

mortgages, 412, 413 

notes, 412, 413 

property restrictions, 413 

public bills, 414 

trust deeds, 414 

wills, 420 
Leases, general provisions of, 126 

instalment, 412 

lessor and lessee, 125 

termination of, 125, 127 

what they mean, 125 
Ledger (see Household Ledger) 
Legal obligation, 419 



Legal reserve insurance companies, 
306 

status of family, 380 
Liberty bonds, 326 
Liens, 400, 401 
Life insurance, 300-313, 419 
Lights, gas, 159 

standards of, 152 
Lighting mediums compared, 151 
Lime in food, 194 
Lineal measures, 227, 228 
Listing outstanding checks, 38 
Litigation, 420 
Living conditions, 110 
Liquid capacity measures, 227, 228 
Loans, personal, 342 
Luxuries, 63, 92 

Magazines and periodicals, record 
of, 421 

Maid, 287 

Mantles, gas, 159 

Markets, study of, 214 

Marketing, food, 210 

Marriage, 385 
common law, 387 
law controlling, 384 
license to, 385 
officials empowered to marry, 387 

Married life vs. single life, 9 

Maturity of notes, 88, 413 

Measures (see Weights and Meas- 
ures) 

Meat, 193 

Medical service, 421 

Menus, 200 
balancing, 201 
card records for, 279 
weekly and monthly, 266 

Meters, electric, 164 
gas, 155 

prepayment, 159 
how to read, 156 
water, 134 

Metric system, 230, 231 

Middle classes, 96 

Milk, 193 

Milk and cream containers, 223 
and milk products, 195 

Mineral elements in foods, 194, 195 

Modern problems of living, 95 

Money, the fluctuating dollar, 103 

Monthly allowances (see Allow- 
ances ) 



CROSS INDEX 



435 



Mortality tables, 308 

Mortgages, 397, 398, 412, 414 

Mortgage note, 344 

Mortgaged property, insurance on, 

190 
Moving and storage, part of rent, 

124 
Mutual life insurance companies, 307 

Natural resources, exhaustion and 

prices, 101 
Necessities, GO, 61, 63 
Notes, 88 

days of grace, 413 

demand, 343 

judgment, 344, 412 

maturity of, 413 

mortgage, 344 

promissory, 342 

Office devices in the home, 268, 283, 

284 
Oil as fuel, 146 
Old age, 350 

children's obligation to, 352 

fund, 424 

possessions during, 353 

pension funds, 355 
Operating heating equipments, 139 
Opportunities to save in buying, 105 
Outstanding checks, 38 
Owning one's home, 112 

Pantry, service and storage, 524, 258 
Parcel post, 216 

Part-time household service, 296 
Paying cash vs. charging, 81 
influence on prices, 103 
taxes, 181 
Pensions, government systems of, 
356 
old age, 355, 356 
workingmen's compensation, 355 
Percentage apportionment of in- 
come, 63 
Personal expense record, 54 
Personal property, 17 
inventory of, 81 
on leased real estate, 125 
taxes, 178 
Phosphorus in foods, 194 
Physical record, 282 
exercises, 374 
efficiency, system in, 267 



Policies, beneficiaries, 310 

borrowing on, 310 

fire insurance, 187 
standard, 187 
valued, 188 
co-insurance, 188 

guaranteed, 394 

life, kind of, 309 

record of, 278 
Poll-taxes, 179 
Postal savings system, 329 
Premium, fire insurance, 187 
Pre-war economic conditions, 68 
Prices, causes of rising, 98 

food, factors affecting, 213, 214 
retail, 97 

high, 95 

and wages vs. abnormal condi- 
tions, 96 
Principles, materialistic, 6 

spiritual, 7 
Probating estates, 17, 405 
Production of food, 210 
Profit sharing, 355 
Promissory notes, 342 
Property (see Real Estate) 

restrictions, 413 
Proteins, 193 
Public school extension work, 376 

Quit-claim deeds, 399 

Radiator, kitchen, 251 

registers and radiation, 139 
Rates for electric service, 163 
Reading, 372, 373, 374 
Reading gas meter, 156 
electric meter, 164 
water, 134 
Real estate, 420 

abstracts of title, 394 
assessments and taxes, 396 
conveyances, forms of, 398 
parties to, 300 
recording, 300, 399 
fees, 398 
guarantee policies, 394 
in common, 17 
inventory of, 81 
investments, 348 
joint-tenancy, 17, 395 
judgments, 401 
legal status of street, 396 
public grade, 396 



436 



CROSS INDE2 



Real estate, liens, 400 

limitation of, 401 
mortgages, 114, 116, 397 
cost of making, 117 
foreclosure of, 397 
release of, 398 
purchasing, 79, 395 
quit-claim deeds, 399 
rights of husband in, 395 

wife in, 395 
taxes, 177 

Torrens System, 394 
warranty deed, 398 
Receipts, 418 
family, 49 
Recipe and pantry record, 282 
Reconcilement of bank statement, 39 
Recording conveyances, 300, 399 

release of mortgage, 398 
Records, address, 281 
appointment, 281 
bills payable, 274 
card, 279 

cash expenditures, 51, 54, 81, 103 
inventory, 277 
pantry, 282 

personal expenses, 54, 57 
physical, 282 
policy, 278, 279 
recipe, 282 
telephone 281 
Recreations, 364-379 
Refrigerator, 255 
evaporation, 255 
iceless, 256 
Relation of cost to income, 69 
Relative cost items in budget, 68 
Renewals, clothing, 247 
Rent, 114, 119 

Renting or buying, investigations, 
129 
paying oneself, 114 
apartment, what it includes, 121 
house, what it includes, 121 
Repacking, 226 
Repairs, 277 

list, making, 278 
Replevin, 413 
Retail deliveries and prices, 104 

food prices, 97 
Returned goods and prices, 104 
Return privileges, 105 
Richards, Ellen, budgets, 64 
Rules for children, 422 



Salaries, 78 
Saloons, 411 

Safety deposit boxes, 33, 270, 421 
rules for using gas, 
electricity, 168 
Saving, 423, 424 

amount saved in 10 years, 324 

bank account, 32 

banker's partial payment bonds, 

325 
danger in, 7 

from limiting children's educa- 
tion, 317 
interest on, 323 

for parts of a year, 325 
institutions for, 329 

building and loan ass'ns, 332 

cooperative banks, 335 
credit unions, 333 
Federal land bank 335 

loan associations, 335 
Morris plan banks, 341 
postal savings system, 331 
instalment plan, 91 
Liberty bonds, 326 
necessary, 315, 316 
opportunities for, 314 
principles involved, 315 
system in, 267, 318 
time it takes to double, 325 
thrift stamps, 326 
Scales in the home, 226 
Schedules for work and employees, 

265, 417 
Servants' and children's schedules, 

265 
Service in the home, 77, 287 
day's work, 296, 297 
domestic, a trade, 297 
efficiency of, 298 
expense of, 289, 290 
part-time, 296 
rendered by children, 293 
reduced by arrangement, 295 

by equipment, 295 
when necessary, 290, 291 
Sewing, 235, 239 
Sheaflfer's budget, 64 
Shelter, 61 
Signature of disabled or illiterates, 

410 
Single life, 9 

tax, 183 
Sink, kitchen, 251 



CROSS INDEX 



437 



Sink, closet, 253 
Sinking fund, 116 
Special schools, 358 

lessons, 359 

taxes, 182 
Sperm oil, 151 
Standard of light, 142 

living raised by a maid, 282 
Statutes of limitation, 413 
Steam heat, 138 
Stocks, 346 

preferred and common, 347 
Stock vs. mutual life insurance com- 
panies, 307 • 
Storage facilities for food, 216 

part of rent, 124 

pantry, 258 

cold, 98, 100 
Stoves, 137, 251 
Stove, utensil closet, 253 
Street, legal status of, 396 

grade of, 396 
Streightoff's law, 64 
Suburban life, 110 
Supply and demand, 98 
Sweets, 193 
System in the home, 262-286 

arrangement, 264 

budget for indebtedness, 273 

buying, 266 
clothing, 267 

children's schedules, 265 

forms, office, 274, 275, 277, 279 

household accounting, 267 

office equipment, 268 

physical efficiency, 267 

routine, 265 

saving, 267 

servant's schedules, 265 

weekly and monthly menus, 206 

Table, kitchen, 254, 396 

Tables, weights and measures, 228 

Taking stock, 81 

Tariff, influence on, 102 

Tax levies and rates, 177. 

Taxes, 177 

boards of review, 180 

Federal income, 183 
exemptions, 184 

income, 183, 184 

inheritance, 185 

objections to forms of, 182 

paying, 181 



Taxes, payable, when and where, 180 

single tax, 183 

special, 183 
Taxation, scheme of, 182-185 
Telephone record, 281 
Tenant's right under a lease, 125 
Thrift (see Savings, Old Age, etc.) 
Thrift stamps, 326 
Transportation, 101 

factor in cost of living, 123 
Trust deeds, 414 
Trusts, influence on prices, 102 
Typewriter in the home, 26, 270, 417 

Unionism vs. capitalism, 96 
Usury, 410 

Vacations, 367 
Vegetables, 194 
Ventilation, 139 
Vitamines in foods, 195 

Wages and salaries, 78, 96 

increase in, 97 
Warranty deed, 398 
Waste, food, 201, 202 

in household, 107 
Water, 119 
diet in, 196 
meters, 134 
supply, 119, 134 
"soluble B" substances, 195 
Weights and measures, 220 

berries and fruits, 226 
bread, 223 

complaints as to, 220 
fuel, 223 
heaped, 226 
ice, 223 
meats, 226 

milk and cream, 223 
repacking, 226 
meteric system, 230, 231 
scales 226 

statutory 220-222, 224, 225 
tables of, 228, 229 
unjust, 100 
Wife, a productive financial factor, 
10 
rights and liabilities of, 391 
Will, 403, 420 

administrator, 404 
codicil, 404 



438 CROSS INDEX 

Will, distribution of intestate's Will, making a, 406, 407 

property, 405 non-cupative, 404 

dower, 404 probate, 405 

estates, 403 revocation of, 406 

executor, 404, 408 witnesses to, 407 

heirs, 403, 408 Wiring, electric, 169 

identity, 407 Workingmen's compensation, 355 

intestates, 403 Wood, as a fuel, 146 



